In perfect competition, an individual firm
A) faces unitary elasticity of demand.
B) has a price elasticity of supply equal to one.
C) faces a perfectly elastic demand.
D) has perfectly elastic supply.
C
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Rachel usually takes long coffee breaks and works less whenever her boss is out of town for business
However, she started taking shorter breaks when the Human Resource Manager at her company announced that each employee will henceforth be paid a performance-based incentive every month. What explains her behavior before and after the announcement of the new policy?
The Economic Recovery Act of 2008 included a temporary increase in the federal deposit insurance ceiling from $100,000 to $250,000. The likely objective was to ________
A) boost bank profitability B) increase the money supply C) discourage withdrawals from banks D) bail out the Federal Deposit Insurance Corporation (FDIC)
When government purchases exceed net taxes, the government has a budget ________ and government saving is
A) surplus; negative B) deficit; positive C) surplus; positive D) deficit; negative
For a given level of inflation, if there is a greater reluctance by foreigners to purchase domestic goods, then the ________ shifts ________.
A. aggregate demand curve; left B. short-run aggregate supply line; upward C. short-run aggregate supply line; downward D. aggregate demand curve; right