As the amount of time a consumer has to adjust to a change in price increases, so does the price elasticity of demand for a good. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Assume that when the price of good X is $12, quantity demanded is 32. When price is decreased to $9, quantity demanded increases to 45. Based on this information, over the range in question demand is elastic. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Personal income taxes are reduced as part of an expansionary fiscal policy. What is the impact on aggregate expenditures and income? A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases. ANSWER A
Date: September 10th, 2020
All else constant, a decrease in the per unit price of labor would create an incentive for a firm manager to substitute labor for capital in the firm’s production process. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Studies and experience suggest that labor and capital are highly complementary inputs to the production of pipe organs. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Business taxes increase. What is the impact on aggregate expenditures and income? A) Both increase. B) Both decrease. C) Aggregate expenditure increases and income decreases. D) Aggregate expenditure decreases and income increases. ANSWER B
Date: September 10th, 2020
Predatory pricing will be most effective when the costs structures of the firms in an industry, including potential entrants into the market, are identical or at least very similar. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
As the number of available substitutes for a good increases, the price elasticity of demand for the good will increase as well. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
In the market for cell phones, all of the following would cause the supply of cell phones to change except: A) an improvement in the technology used to produce cell phones. B) an increase in the cost of labor used to produce cell phones. C) a change in cell phone producers’ expectations. D) an increase […]
Date: September 10th, 2020
The ability to make a credible commitment is necessary for the first mover to gain an advantage in a sequential game. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
