If prices rise, then persons living on fixed incomes will
a. see their real incomes falling.
b. see the purchasing power of their savings fall.
c. need to spend more to maintain their standard of living.
d. All of the above are true.
d
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To find a firm’s total revenue at every quantity, all you need to know is
A. the demand curve for its product. B. the demand curve for its product and its total cost. C. its profit-maximizing price and quantity. D. its total profit curve.
The costs involved with breaking a ban placed on a good depend on all of these except the:
A. likelihood of being punished if caught. B. punishment associated with rule breaking. C. ability of the public or individuals to pay for those costs. D. likelihood of being caught.
The absolute value of the slope of the production possibilities curve at any point:
A) gives the price of the good on the vertical axis that must be given up to attain an additional unit of the good on the horizontal axis. B) is found by dividing the horizontal change by a vertical change. C) gives the quantity of the good on the vertical axis that must be given up to produce an additional unit of the good on the horizontal axis. D) gives the price of the good on the horizontal axis relative to the price of the good on the vertical axis.
If the price elasticity of demand is equal to zero and the price was to rise, the quantity demanded would:
A. decrease slightly. B. fall to zero. C. not change. D. increase.