Which of the following statements is correct for the case of a downward-sloping demand curve (beyond the first unit of output)? A) P = AR = MR B) P = AR > MR C) P > AR > MR D) P = AR < MR ANSWER B
Date: September 10th, 2020
For the U.S. economy, the largest expenditure category is: A) government expenditures. B) net export expenditures. C) personal consumption expenditures. D) investment expenditures. ANSWER C
Date: September 10th, 2020
Measuring expenditures and income with the price level allowed to vary, so that changes in these values represent changes in either the actual amount of goods, services, and income or changes in the price level or a combination of both factors is denoted in ________ terms. A) nominal B) real C) constant dollar D) all […]
Date: September 10th, 2020
If an industry is characterized by substantial diseconomies of scale, as a particular firm in the industry expands its production capacity we will observe: A) a decrease in marginal costs. B) an increase in the marginal product of labor. C) a decrease in the total fixed costs of production. D) an increase in the average […]
Date: September 10th, 2020
According to the circular flow model, an increase in spending by businesses on productive resources would cause the income and spending of consumers to increase. Indicate whether the statement is true or false ANSWER TRUE
Date: September 10th, 2020
As we move down a linear demand curve, the absolute value of the price elasticity of demand: A) increases. B) stays the same. C) decreases. D) cannot be determined without more information. ANSWER C
Date: September 10th, 2020
Measuring expenditures and income with the price level held constant, so that any changes in these values represent changes in the actual amount of goods, services, and income is denoted in ________ terms. A) nominal B) real C) constant dollar D) all of the above ANSWER B
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
