If the supply for a good is elastic, that means that when price increases, the
A) supply will increase.
B) quantity supplied will decrease.
C) quantity supplied will increase by a smaller percentage than the price increased.
D) quantity supplied will increase by a greater percentage than the price increased.
Ques. 2In the long-run, a firm in monopolistic competition produces an amount of output that sets
A) P > ATC and MR = MC.
B) P > ATC and MR > MC.
C) P = ATC and MR = MC.
D) P = ATC and MR > MC.
Ques. 3American Idol is a popular television program where contestants compete to win a 1 million record deal. To determine the winner, fans either dial the number or send a text message indicating their favorite contestant.
The contestant with the highest number of texts and phone calls wins. What is the scarce resource in this example? A) 1 million record deal
B) television ratings
C) phone calls and text messages
D) fans
Ques. 4If the wage rate paid in the fast-food outlets in a small town is greater than the reservation wage of all the teenagers in the town and less than the reservation wage of all the adults, then the fast-food outlets will hire ________.
A) mostly adults and a few teenagers
B) some adults and some teenagers
C) only adults
D) only teenagers
Ques. 5If the official settlements account is zero, whenever the United States has a current account deficit, it must also have a capital account deficit.
Indicate whether the statement is true or false
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