While the demand for beer is relatively price inelastic, the price elasticity of demand for a particular brand is relatively high, due in large part to availability of close substitutes. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
One of the major motivations for labor resistance to productivity enhancing changes in a production process is the resulting threat to job security. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
When demand is perfectly inelastic with respect to price, the demand curve is horizontal. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Because cooperation dominates noncooperation as a strategy for maximizing profits, cheating is rarely if ever an issue that cartels have to contend with. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Assume that in the market for plasma TVs there is an increase in supply. The result will be: A) an increase in equilibrium price and quantity. B) a decrease in equilibrium price and quantity. C) an increase in equilibrium quantity and uncertain effect on equilibrium price. D) a decrease in equilibrium price and increase in […]
Date: September 10th, 2020
The open economy multiplier is calculated as follows: A) 1/[1-(marginal propensity to consume + marginal propensity to invest)] B) 1/[1-(marginal propensity to consume + marginal propensity to import)] C) 1/[1-(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)] D) 1/[1-(marginal propensity to consume + marginal propensity to invest – marginal […]
Date: September 10th, 2020
An increase in the number of people in the United States with health insurance could cause the cost of providing health care services to increase as the incentive for health care providers to minimize costs decreases. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume the income elasticity for a particular good has been estimated to be -0.68. Based on this information, we can infer that the good is inferior and a necessity. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
As the price of milk increases, what would reasonably be expected to happen to the equilibrium price and equilibrium quantity of cereal? (Milk and cereal are complements.) A) Equilibrium price would increase and equilibrium quantity would decrease. B) Equilibrium price and quantity would both decrease. C) Equilibrium price would decrease and equilibrium quantity would increase. […]
Date: September 10th, 2020
The function that shows the inverse relationship between planned consumption and investment spending and the real interest rate, all else constant, is called the: A) interest-related expenditure function. B) aggregate expenditure function. C) consumption function. D) investment function. ANSWER A
Date: September 10th, 2020
