When calculating the price elasticity of demand, it is assumed that all of the other determinants of demand are to be held constant. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
If the price of salmon increases relative to the price of cod, the demand for: A) cod will decrease. B) cod will increase. C) salmon will decrease. D) salmon will increase. ANSWER B
Date: September 10th, 2020
The slope of the isocost line: A) changes as the combination of labor and capital is altered by the firm. B) is equal to the ratio of the marginal productivities at all points along the isocost line. C) is equal to the negative of the ratio of the prices of the outputs. D) is equal […]
Date: September 10th, 2020
Higher expected profits and business confidence ________ investment spending. A) decrease B) increase C) do not affect D) none of the above. ANSWER B
Date: September 10th, 2020
Appreciation of the U.S. dollar will ________ exports and ________ imports, other things equal. A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase ANSWER D
Date: September 10th, 2020
A movement down along a given isoquant causes the marginal rate of technical substitution to: A) increase. B) stay the same. C) decrease. D) cannot be determined without additional information. ANSWER C
Date: September 10th, 2020
One of the surprising conclusions of many of the noncooperative models of oligopoly is that firms end up better off with the noncooperative outcome than they would by cooperating with one another. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
In comparing an oligopolistic firm to a perfectly competitive firm it is generally assumed that the price charged by the competitive firm will be higher than the price charged by the oligopolistic firm. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
If a 10 percent increase in the price of a luxury hotel room causes the quantity demanded to decrease by 41.5 percent., we can conclude that the price elasticity of demand for luxury hotel rooms is approximately -0.24. Indicate whether the statement is true or false ANSWER FALSE
Date: September 10th, 2020
Government expenditures are considered autonomous in the model meaning that changes are the result of: A) changes in real income. B) changes in inflation. C) changes in unemployment. D) changes in policy decisions. ANSWER D
Date: September 10th, 2020
