If the cross-price elasticity of demand between two goods is positive, we can assume that the two goods in question are: A) complements. B) substitutes. C) inferior goods. D) totally unrelated to one another. ANSWER B
Date: September 10th, 2020
The list of the major factors that create economies of scale includes all of the following except: A) specialization and division of labor. B) quantity discounts. C) an increase in demand for the firm’s output. D) the use of automation devices. ANSWER C
Date: September 10th, 2020
All else constant, an increase in the amount of government spending on roads and bridges would cause GDP in the domestic economy to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Consumer income can be used for three things: purchases of goods and services, paying taxes and saving. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Economies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) a downward-sloping short-run average total cost curve. ANSWER A
Date: September 10th, 2020
Assume the marginal revenue from each additional unit of a good sold is 0. In this case, we can conclude that demand for the good is: A) unit elastic B) perfectly elastic. C) perfectly inelastic. D) relatively inelastic. ANSWER B
Date: September 10th, 2020
In which of the following situations would each of the members be responsible for producing an equal share of the total amount of output sold by the cartel engaged in joint profit maximization? A) When the amount of revenue generated by each member of the cartel is the same. B) When there are no economies […]
Date: September 10th, 2020
The vital link between the real and monetary sectors of the economy is the: A) price level. B) interest rate. C) balance of payments. D) budget deficit. ANSWER B
Date: September 10th, 2020
According to the circular flow model, all else constant, an increase in government spending should cause an increase in spending, income, and production in the economy. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
Diseconomies of scale are illustrated by: A) a downward sloping long-run average cost curve. B) a flat long-run average cost curve. C) an upward-sloping long-run average cost curve. D) an upward-sloping short-run average total cost curve. ANSWER C
Date: September 10th, 2020
