If demand for a seller's product is elastic, a price increase will decrease total revenue
a. True
b. False
Indicate whether the statement is true or false
True
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What does the Fed auction at the Term-Auction Facility?
a. government bonds of a quantity it sets b. government bonds with the quantity determined at the auction c. loans of a quantity it sets d. loans with the quantity determined at the auction
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The Chair of the Economics Department at State U says that fundraising employees should be hired as long as their marginal benefit exceeds their marginal cost. If the University follows this advice, then ________ employee(s) will hired, and the net benefit (total donations minus total labor costs) will be ________.
A. 1; $22,000 B. 2; $25,426 C. 2; $3,476 D. 3; $25,426
If prices of a nation's exported products rise in comparison to prices paid for imports, that nation experiences a:
a. rise in its international terms of trade. b. decline in its international terms of trade. c. reduction in its imports. d. reduction in its exports.
If a consumer chooses a combination of goods that are inside of her budget line, than
A) the consumer is maximizing her satisfaction. B) the consumer is spending more than her current income. C) the consumer has a constant marginal rate of substitution for the two goods. D) the consumer is not maximizing her satisfaction.