Problem 1: Growth trend analysis assumes:
a. constant period-by period unit increase in an important variable
b. constant period-by period unit decrease in an important variable
c. constant period-by period percentage increase in an important variable
d. constant period-by period percentage change in an important variable
Problem 2: When demand is elastic, a price increase will
a. lower marginal revenue
b. lower marginal revenue and total revenue
c. increase total revenue
d. decrease total expenditures of consumers
Problem 3: If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then at point P1 the point price elasticity equals
a. -6
b. -2.5
c. -4.25
d. -0.12
Problem 4: An imposition of a new tax on employer for public services coverage would lead to a decrease in the
a. supply of labor
b. the number of working hours supplied
c. the demand for labor
d. the number of working hours demanded
Problem 5: Accounting net income divided by the book value of the firm is the
a. return on assets
b. profit margin
c. return on stockholders' equity
d. total asset turnover