In the case of a short-run production function: A) all of the inputs are variable. B) the amount of labor employed is held constant. C) at least one of the inputs is fixed. D) all of the inputs are fixed. ANSWER C
Date: September 10th, 2020
Assuming that C = $4,500, I = $1,000, G = $1,200, Exports = $450, Imports = $550, Depreciation = $600, and Indirect Business Taxes = $500 (all in billions of dollars), GDP equals: A) $5,500 billion. B) $6,000 billion. C) $6,400 billion. D) $6,600 billion. ANSWER D
Date: September 10th, 2020
At a price of $5, consumers buy 200 units of good X. When the price falls to $4, quantity demanded increases to 250 units. We can conclude that over this range, demand is: A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. ANSWER B
Date: September 10th, 2020
Assume that when the price of good Z is increased from $5 to $6, the total revenue earned increases from $600 to $690. Based on this information, we can conclude that over this range, demand for Z is: A) elastic. B) unit elastic. C) inelastic. D) perfectly inelastic. ANSWER C
Date: September 10th, 2020
The last time the U.S. Post Office raised its prices for mail service critics of the rate increase argued that the Post Office’s revenues would actually decline as a result of the price increase. It can be concluded that: A) both groups believe demand is elastic, but for different reasons. B) both groups believe demand […]
Date: September 10th, 2020
The type of policy that involves interest rates and the availability of loanable funds is known as: A) fiscal policy. B) monetary policy. C) strategic financial policy. D) federal policy. ANSWER B
Date: September 10th, 2020
Over the past few years, airlines have tended to compete in the market for intercontinental business class travelers on the basis of: A) price. B) cost. C) timeliness of their flight schedules. D) amenities. ANSWER D
Date: September 10th, 2020
The type of policy that involves changes in taxes or spending by the federal government is known as: A) fiscal policy. B) monetary policy. C) strategic financial policy. D) federal policy. ANSWER A
Date: September 10th, 2020
Which of the following is not considered to be a determinant of the price elasticity of demand for a particular good? A) The number of available substitutes. B) The cost of the good relative to total income. C) The quantity of the good that is supplied to the market. D) The time period under consideration. […]
Date: September 10th, 2020
An increase in price will result in an increase in total revenue if demand is: A) perfectly elastic. B) relatively elastic. C) inelastic. D) unit elastic. ANSWER C
Date: September 10th, 2020
