Assuming the demand curve is downward sloping, as price increases, the price elasticity of demand for a good (in absolute value) and marginal revenue: A) increase. B) stay the same. C) decrease. D) cannot be determined. ANSWER A
Date: September 10th, 2020
The role of the costs of capital is influenced by the degree to which firms can substitute capital for other inputs of production known as relative prices. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Business investment is usually more volatile than overall economic growth. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
All of the following are limitations of direct consumer surveys except: A) the possibility that consumers’ responses may not reflect their actual behavior in the market place. B) the possibility of response biases because survey respondents may not want to reveal their true preferences. C) the likelihood that respondents will deliberately and systematically mislead interviewers. […]
Date: September 10th, 2020
A measure of the change in the stock of real and financial assets held by a country’s residents in a foreign country and by foreigners in the given country is called the: A) current account. B) financial account. C) national income product account. D) none of the above. ANSWER B
Date: September 10th, 2020
The slope of the linear consumption function represents induced consumption expenditures. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When the government decides to impose a tax on sellers of a good or service, sellers try to pass the tax on to consumers by raising the price of the good being sold. Assume the government decides to place a $1 tax on each unit of a good sold, e.g., tires. Using the simple model […]
Date: September 10th, 2020
An improvement in technology would cause each of the isoquants in a firm’s isoquant map to shift out away from the origin. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume there is a simultaneous decrease in the cost of batteries used in hybrid cars and a shift in consumer preferences toward more fuel-efficient vehicles. Based on this, we can conclude, with certainty, that in the market for hybrid cars, equilibrium: A) price will decrease. B) price will increase. C) quantity will decrease. D) quantity […]
Date: September 10th, 2020
An increase in stock prices ________ the size of people’s wealth and may ________ their willingness to spend, everything else held constant. A) increases; increase B) increases; decrease C) decreases; increase D) decreases; decrease ANSWER A
Date: September 10th, 2020
