Total revenues reach a maximum when
A) demand is elastic.
B) demand is inelastic.
C) demand is unit-elastic.
D) price elasticity is at a minimum.
Answer: C
Economics
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The school of thought that emphasizes the natural tendency for an economy to move toward equilibrium full employment without inflation is the
a. Keynesian school b. supply-side school c. noninterventionist school d. rational expectations school e. classical school
Economics
When producers do not have to pay the full cost of producing a product, they tend to:
A. Over-produce the product because of a demand-side market failure B. Under-produce the product because of a demand-side market failure C. Under-produce the product because of a supply-side market failure D. Over-produce the product because of a supply-side market failure
Economics