The relationship between sales and revenue is
A) an inverse relationship.
B) a direct relationship.
C) a negative relationship.
D) independent.
We should never assume that an inelastic demand curve is a perfectly inelastic demand
curve because
A) there has never been evidence of a perfectly inelastic demand curve.
B) an inelastic demand curve may be perfectly inelastic at some times but not others.
C) perfectly inelastic demand curves are rare.
D) an inelastic demand curve may be elastic at high prices.
A Canadian oil company hires geological survey services from the United States. If all
else remains equal, this will
A) increase net exports.
B) increase the balance of trade.
C) decrease the current account balance.
D) increase the financial account.
Monthly expenditures for a family of 4 in 2012 averaged $1,400. In 2013, the cost of
the same purchases was $1,500. If 2012 is the base year, what was the CPI in 2013?
A) 110
B) 107
C) 100
D) 93
How do the owners of a partnership relate to the business?
A) The owners and the business are not separate legal entities.
B) The owners and the business are separate legal entities.
C) The assets of the owners are considered separate from the asset of the business.
D) None of these describe the legal relationship of the owners to the business.
In the United States, barriers to entry in professional team sports (for example, football
and baseball) result from
A) the draft of college players, which grants teams exclusive signing rights to
individual players.
B) long-term leases teams sign for stadiums and ballparks in major cities.
C) television contracts, which give networks the exclusive rights to broadcast games.
D) the reserve clause, which is a provision in contracts of professional athletes that
require them to play for specific teams over the length of their contracts.
Based on the current rate of growth, health care spending as a percentage of GDP
through Medicare, Medicaid, and other U.S. government programs is expected to
A) stabilize within the next 20 years.
B) account for a majority of spending as a percentage of GDP within 5 years.
C) slow down during this decade.
D) more than double over the next 40 years.
________ is/are the payment for the factor of production ________.
A) Wages; capital
B) Interest; labor
C) Profit; entrepreneurship
D) Rent; capital
The price of wheat has fallen since 1950. Which of the following explains this price
decline?
A) The price elasticity of demand is less than 1 (in absolute value) and the income
elasticity of demand for wheat is low.
B) The price elasticity of demand is greater than 1 (in absolute value) and the income
elasticity of demand for wheat is low.
C) The price elasticity of demand is less than 1 (in absolute value) and wheat is an
inferior good.
D) The price elasticity of demand is greater than 1 (in absolute value) and the income
elasticity of demand for wheat is greater than 1.
Assume that a monopolist practices perfect price discrimination. The firm’s marginal
revenue curve will
A) be perfectly elastic.
B) be equal to its demand curve.
C) will be perfectly inelastic.
D) will lie below its demand curve.
If the Fed pursues expansionary monetary policy then
A) the money supply will decrease, interest rates will rise and GDP will fall.
B) the money supply will decrease, interest rates will fall and GDP will fall.
C) the money supply will increase, interest rates will rise and GDP will rise.
D) the money supply will increase, interest rates will fall and GDP will rise.