Question : 92) The price of the good multiplied by the quantity : 1241496

Economics

92) The price of the good multiplied by the quantity sold is its

A) total revenue.

B) total cost.

C) total spending.

D) total income.

E) total quantity.

93) Total revenue equals

A) price × quantity sold.

B) profit – cost.

C) price.

D) quantity sold – cost.

E) cost × price.

94) The total revenue test says

i)Demand is elastic if a decrease in price results in an increase in total revenue.

ii)Total revenue is maximized when demand is elastic.

iii)Total revenue is minimized when demand is unit elastic.

A) i only

B) i and ii

C) ii and iii

D) i, ii and iii

E) ii only

95) If demand is price inelastic and the price is lowered, which of the following occurs?

A) The quantity sold decreases.

B) The total expenditure increases and the total revenue decreases.

C) The total revenue of the firms selling the product is unchanged.

D) The total revenue of the firms selling the product decreases.

E) The total expenditure decreases and the total revenue increases.

96) If demand is inelastic and the price falls, the total revenue

A) rises.

B) falls.

C) remains constant.

D) might rise, fall, or remain constant.

E) becomes negative.

97) Total revenue increases if the price of the good

A) rises and demand is elastic.

B) rises and demand is inelastic.

C) rises and demand is unit elastic.

D) falls and supply is inelastic.

E) falls and demand is unit elastic.

98) If the supply of a good decreases and it causes total revenue to increase, this shows that the good has an

A) inelastic demand

B) elastic demand

C) unit elastic demand

D) inelastic supply

E) elastic supply

99) You own a small store. Your cashier thinks you should raise prices to increase your total revenue and your customer thinks you should lower prices to increase your total revenue. The cashier thinks the price elasticity of demand is ________ and the customer believes the price elasticity of demand is ________.

A) inelastic; elastic

B) elastic; inelastic

C) elastic; elastic

D) inelastic; inelastic

E) unit elastic; elastic

100) Products X, Y, and Z have price elasticities of 3.0, 0.80, and 1.0 respectively. Total revenue decreases if the price of

A) product X falls.

B) product Y falls.

C) product Z falls.

D) product X or product Z falls.

E) product Y or product Z falls.

101) If a 2 percent rise in price leads to a 4 percent decrease in quantity demanded, then demand is

A) elastic and total revenue decreases.

B) elastic and total revenue increases.

C) inelastic and total revenue decreases.

D) elastic, but we cannot tell what happens to total revenue without more information.

E) Total revenue decreases but we cannot tell if the demand is elastic or inelastic without more information.

102) If the demand for insulin is inelastic, an increase in insulin prices leads to

A) less total revenue for insulin makers.

B) more total revenue for insulin makers.

C) no change in total revenue for insulin makers.

D) first a decrease, then an increase in total revenue for insulin makers.

E) Total revenue probably changes, but we need more information about the change in total expenditures on insulin to determine if the total revenue rises, falls, or stays the same.

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July 1, 2023

9.1 The United States in the International Economy

1) Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in

A) China retaliating by raising tariffs on some U.S. exports.

B) China halting the sale of all products in the United States.

C) U.S. firms never being able to meet the demand for U.S.-produced tires.

D) the government demanding price cuts from U.S. tire manufacturers.

2) Workers in industries protected by tariffs and quotas are likely to support these trade restrictions because

A) they do not want to offend their employers who want them.

B) politicians lobby to convince workers the restrictions will make them better off.

C) they believe the restrictions will protect their jobs.

D) they don't understand that the restrictions will threaten their jobs.

3) The intention of the U.S. tariff on Chinese tires was to

A) protect jobs in the U. S. tire industry.

B) protect infant industries in tire U.S. tire market.

C) insure that Chinese tires meet U.S. quality and safety standards.

D) save the government money by restricting the sale of more expensive Chinese-made tires.

4) In the 1930s, the United States charged an average tariff rate ________. Today, the rate is ________.

A) of 100 percent; 20 percent

B) above 50 percent; less than 1.5 percent

C) of less than 10 percent; over 40 percent

D) of 17 percent; 33 percent

5) A tariff is a tax imposed by a government on

A) exports.

B) services.

C) imports.

D) luxury items.

6) Goods and services bought domestically but produced in other countries are referred to as

A) exports.

B) imports.

C) transfer payments.

D) foreign consumption.

7) Exports are domestically produced goods and services

A) sold to other countries.

B) sold to the government.

C) sold at home.

D) which are used to produce other goods and services.

8) When Roxanne, a U.S. citizen, purchases a designer dress from Barneys of New York that was made in Milan, the purchase is

A) both a U.S. and an Italian import.

B) a U.S. import and an Italian export.

C) a U.S. export and an Italian import.

D) neither an export nor an import for either country.

9) When BMW, a German company, purchases a welding machine that was made in Toronto, the purchase is

A) both a German and a Canadian import.

B) a German import and a Canadian export.

C) a German export and a Canadian import.

D) neither an export nor an import for either country.

10) Which of the following statements about the importance of trade to the U.S. economy is true?

A) Since 1950, both exports and imports have steadily decreased as a fraction of U.S. gross domestic product.

B) Overall, about 80 percent of U.S. manufacturing jobs depend directly or indirectly on exports.

C) The United States is the second largest exporter in the world.

D) The U.S. economy is highly dependent on international trade for growth in its gross domestic product.