U.S. economic data from 1955 to 2000 show that both unemployment and inflation rates increased during that period
a. True
b. False
Indicate whether the statement is true or false
True
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In an industry with free entry and exit, positive economic profit:
A. indicates a market failure. B. can be sustained indefinitely. C. cannot be sustained indefinitely. D. can never occur.
What leads thousands of profit seeking entrepreneurs to misread the signals of the market-price system?
A) Poor budget policy on behalf of government officials B) The globalization of the world economy C) An artificial lowering of interest rates D) A poor knowledge of the basic principles of supply and demand
Assume that a monopolist decides to maximize revenue rather than profit. How does this operating objective change the size of the deadweight loss? If you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight loss of monopoly, should you maximize profits or maximize revenue? Explain your answer
The price elasticity of demand for leisure air travel is -1.60. Therefore, a
A. 16 percent decrease in the price of leisure air travel will cause a 10 percent increase in the amount of leisure air travel. B. 10 percent decrease in the price of leisure air travel will cause a 16 percent increase in the amount of leisure air travel. C. a 16 percent decrease in the price of leisure air travel will cause a 10 percent decrease in the amount of leisure air travel. D. 10 percent decrease in the price of leisure air travel will cause a 16 percent decrease in the amount of leisure air travel.