Refer to the information provided in Figure 28.7 below to answer the question(s) that follow.
Figure 28.7Refer to Figure 28.7. Which combinations of events could move the economy from Point A to Point C, and then from Point C to Point D?
A. an expansionary fiscal policy followed by a rightward shift in the AS curve
B. a contractionary fiscal policy followed by a leftward shift in the AS curve
C. a contractionary fiscal policy followed by a rightward shift in the AS curve
D. an expansionary fiscal policy followed by a leftward shift in the AS curve
Answer: D
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Which of the following statements is true?
A) If marginal costs are constant, then it is optimal to advertise until the last dollar spent on advertising generates one additional dollar of sales. B) If the demand curve shifts leftward as the advertising expenditure increases, then the advertising elasticity of demand is positive. C) If the advertising elasticity of demand declines and consumer demand becomes more price elastic, then the optimal advertising-to-sales ratio declines. D) If the advertising elasticity of demand is positive, then the demand curve must be upward sloping.
To assess whether or not a good is normal or inferior, economists are interested in the cross price elasticity of demand
a. True b. False Indicate whether the statement is true or false
The long-run price elasticity of demand for a good is
a. zero b. smaller (in absolute value) than the short-run price elasticity c. larger (in absolute value) than the short-run price elasticity d. infinite e. the same as the short-run elasticity
Consider two individuals, Ozzy and Sharon, who produce toy boats and yoyos. Ozzy's and Sharon's hourly productivity are as follows:?Yoyos /hourToy boats /hourOzzy124Sharon105Who has the absolute advantage or comparative advantage in the production of yoyos or boats?
What will be an ideal response?