Economics

Which of the following statements is correct?
A) The markup pricing rule that is derived from the rule for profit maximization can be used as a substitute for determining the profit-maximizing level of output by equating marginal revenue and ma

hiusy98 93 2 Replies

7 years ago

Which of the following statements is correct?
A) To maximize profit, a firm should apply a uniform markup to each product it sells.
B) The profit-maximizing firm's ability to mark up price over average cost is limited by the price el

insherro 113 1 Reply

sofresh

7 years ago

Which of the following statements is correct?
A) A firm with high fixed costs tends to decrease prices more and output less in the face of declining demand than a firm with relatively low fixed costs.
B) A firm with high fixed costs tends

hiusy98 87 2 Replies

7 years ago

Which of the following statements is correct?
A) The monopolist's supply curve is its MC curve.
B) The monopolist's supply curve is that section of its MC curve that lies above its AVC curve.
C) The monopolist's suppl

hiusy98 120 2 Replies

7 years ago

Which of the following statements is correct?
A) Economic profit is the difference between total revenue and the full opportunity cost of all the resources used in production.
B) Economic profit is the difference between total revenue and

hiusy98 94 2 Replies

7 years ago

Which of the following statements is correct?
A) Evidence strongly suggests that legislatively mandated input combinations have greatly reduced production costs in many industries.
B) Legislating input combinations in a particular industr

insherro 394 1 Reply

7 years ago

Which of the following statements is correct?
A) In the short run, if a firm chooses to produce no output (i.e., shut down) its total costs of production will equal its total fixed costs.
B) If a firm decides to shut down, its short-run t

insherro 80 1 Reply

7 years ago

Which of the following statements is correct?
A) Workers employed by General Motors are approximately twice as productive as their Japanese counterparts.
B) Between 1979 and 1998, Chrysler and Ford eliminated the productivity gap between

insherro 287 1 Reply

toogoo

7 years ago

Which of the following statements is correct?
A) The use of Census data is especially useful and cost-effective in targeted marketing.
B) Census data are considered more reliable than data collected via direct consumer surveys because peo

insherro 80 1 Reply

sofresh

7 years ago

Which of the following statements is correct?
A) In the case of a linear demand curve, the slope and the price elasticity of demand are equal at each point on the demand curve.
B) The slope of the demand curve is some constant value, but t

insherro 121 1 Reply

7 years ago

Which of the following statements is correct?
A) Arc elasticity of demand is the same as the slope of the demand curve.
B) Arc elasticity of demand only applies to a nonlinear demand curve.
C) Point elasticity of demand is measured

insherro 184 1 Reply

7 years ago

Which of the following statements is correct?
A) A change in demand or supply can only be caused by a change in price.
B) A simultaneous decrease in demand and increase in supply will result in an increase in equilibrium price and uncertai

hiusy98 91 2 Replies

7 years ago

Which of the following statements is correct?
A) Because it is subject to change, and frequently does, consumer and business confidence has only a minimal impact on future economic activity.
B) Because it has historically remained steady,

hiusy98 62 2 Replies

7 years ago

Which of the following statements is correct?
A) So long as a firm is sufficiently large, it will have some amount of market power, regardless of the type of market in which it operates.
B) All else constant, a monopoly firm has more marke

insherro 90 1 Reply

7 years ago

Which of the following statements is correct?
A) Managerial decisions are affected primarily by microeconomic forces.
B) Managerial decisions are affected primarily by macroeconomic forces.
C) Managerial decisions are affected by bo

insherro 87 1 Reply

7 years ago

Which of the following statements is correct?
A) Actual investment exceeds planned investment when real GDP is less than aggregate planned expenditures.
B) Planned investment exceeds actual investment when real GDP is greater than aggregate

vellojo 196 2 Replies

vellojo

7 years ago

Which of the following statements is correct?
A) If poverty were eliminated there would be no reason to study economics.
B) Economics is a natural science.
C) Economic analysis can be used to explain how societies, but not individuals,

NYC 137 2 Replies

NYC

8 years ago

Which of the following statements is CORRECT?

Which of the following statements is CORRECT?
A) If most shocks to the economy are aggregate demand shocks or permanent aggregate supply shocks, then policy that stabilizes inflation will also stabilize economic activity, even in the short run.

valputin 174 3 Replies

Meela

8 years ago

Which of the following statements is correct?
A) An increase in the price level shifts the aggregate demand curve rightward.
B) An increase in the price level shifts the aggregate demand curve leftward.
C) An increase in the quantity o

Loraine 132 1 Reply

9 years ago

Which of the following statements is correct?
A) An increase in people's expected future income shifts the aggregate demand curve leftward.
B) A tax increase shifts the aggregate demand curve leftward.
C) An increase in potential

Loraine 346 1 Reply

9 years ago

Which of the following statements is correct?
A) The price level does not affect the level of real GDP demanded.
B) The lower the price level, the greater the quantity of real GDP demanded.
C) The lower the price level, the more the ag

Loraine 155 1 Reply

9 years ago

Which of the following statements is correct?
A) required reserves = (total deposits) × (excess reserve ratio)
B) required reserves = (total reserves) × (excess reserve ratio)
C) required reserves = (total deposits) × (required reserv

Loraine 113 2 Replies

9 years ago

Which of the following statements is correct?
A) A firm in oligopoly will charge a price that is lower than the price charged in perfect competition.
B) If firms in oligopoly look only at their own self-interest in deciding the output they

Loraine 388 1 Reply

VincenzoD

9 years ago

Which of the following statements is correct?
A) Economic profit takes into account all costs involved in producing a product.
B) Accounting profit is not relevant in preparing the firm's financial statement.
C) Economic profit a

Tidy 301 1 Reply

VincenzoD

9 years ago

Which of the following statements is correct?
A) Any firm can price discriminate.
B) Only firms that sell high-priced products can price discriminate.
C) In order to price discriminate, a firm must sell a good or service that cannot be

Loraine 164 2 Replies

9 years ago

Which of the following statements is correct?
A) Monopolies are guaranteed to earn an economic profit.
B) The market demand and the firm's demand are the same for a monopoly.
C) Monopolies have perfectly inelastic demand for the p

Loraine 178 2 Replies

9 years ago

Which of the following statements is correct?
A) Consumer surplus equals the price paid for a good.
B) The consumer surplus from a good is always larger than the total benefit from the good.
C) An increase in price decreases consumer s

Loraine 214 1 Reply

9 years ago

Which of the following statements is correct?
A) The income elasticity of demand for inferior goods is positive.
B) The cross elasticity of demand for substitutes is negative.
C) The income elasticity of demand for normal goods is pos

Loraine 190 2 Replies

9 years ago

Which of the following statements is correct?
A) The demand for New Balance shoes is more elastic than the demand for shoes in general.
B) The demand for salt is very elastic.
C) The demand for luxuries is less elastic than the demand

Loraine 314 2 Replies

9 years ago

Which of the following statements is correct?
A) If capital is idle, the economy is producing at its full potential.
B) The production possibilities frontier shows that there are no limits to production.
C) A tradeoff is a limit that f

Loraine 708 3 Replies

Taliyah Shepherd

3 years ago

Which of the following statements is correct?
A) The slope of a straight line changes depending where on the line it is calculated.
B) The slope of a curved line is not defined because it is impossible to calculate the slope along a curved

Loraine 282 2 Replies

IloveChi

9 years ago

Which of the following statements is correct?i) The difference between the value of a country's ...

[html]Which of the following statements is correct?
i) The difference between the value of a country's exports and its imports is known as the trade balance.
ii) The difference between the value of a country's exports and its imports is kno

rasnulx 43 1 Reply

maneee1

A year ago

Which of the following statements is correct?i.As the economy grows, the opportunity costs of econom

Which of the following statements is correct?
i.   As the economy grows, the opportunity costs of economic growth decrease.
ii.   Economic growth has no opportunity cost.
iii.   The opportunity cost of economic growth is current consumption

Loraine 315 2 Replies

Dropx

9 years ago

Which of the following statements is correct?i.The demand curve shows the maximum price people are w

Which of the following statements is correct?
i. The demand curve shows the maximum price people are willing to pay for a given quantity of the good.
ii. The maximum price a consumer is willing to pay for an additional unit is the marginal

Loraine 202 2 Replies