Multiple choice questions

Only one answer is correct. Thank you.

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

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

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

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

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