How quickly can an increase in government spending increase the gross domestic product?
(A) 6 months
(B) 1 year
(C) 5 years
(D) 3 years
Ans: (A) 6 months
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Suppose when the price of a cookie is $2.50, the quantity demanded is 50, and when the price is $1, the quantity demanded is 200. Using the midpoint method, the price elasticity of demand is:
A. –1.40 B. –0.72 C. –140 D. –7.2
Happy Trails, a bicycle rental company, is considering purchasing three additional bicycles. Each bicycle would cost them $249.66 . At the end of the first year the increase to their revenues would be $140 per bicycle. At the end of the second year the increase to their revenues again would be $140 per bicycle. Thereafter, there are no increases to their revenues. At which of the following
interest rates is the sum of the present values of the additional revenues closest to the price of a bicycle? a. 5 percent b. 6 percent c. 7 percent d. 8 percent
Refer to the four graphs below. In which graph would the indicated shifts cause equilibrium quantity to definitely rise, but the effect on price is indeterminate?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
A firm's long-run average cost curve is also called its
a. profit curve b. explicit cost curve c. opportunity cost curve d. production curve e. planning curve