If all of the following examples are inelastic, which one will most likely have a decrease of revenue?
a. The price of cameras rises.
b. The price of milk falls.
c. The quantity supplied of lipstick declines.
d. The quantity supplied of perfume remains constant.
b. The price of milk falls.
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Which of the following statements is TRUE about profits?
A) Profits are considered a cost of doing business. B) Profits are excluded from the circular flow of the income diagram. C) The only portion of profits that are included in the circular flow diagram are the portion paid out in the form of dividends. D) Profits are considered one of the resources necessary for production.
Which of the following statements is false?
A) Each year the United States exports about 50 percent of its wheat crop and 20 percent of its corn crop. B) Exports benefit trading countries because exports create jobs. Imports do not benefit trading countries because they result in a loss of jobs. C) Not all sectors of the U.S. economy are affected equally by international trade. D) Most of the leading exporting countries are large, high-income countries.