Over the long run if central banks want to avoid high rates of inflation, they need to be concerned with the:
A. unemployment rate.
B. real economic growth rate.
C. money growth rate.
D. productivity of labor.
Answer: C
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Firms that exhibit price-taking behavior
A) wait for other firms to set price, take it as given, and charge a higher price. B) have outputs that are too small to influence market price and thus take it as given. C) take pricing behavior in their own hands. D) are independently capable of setting price.
A successful advertising campaign would likely
a. increase price elasticity of demand by stressing the uniqueness of the product b. reduce price elasticity of demand by stressing the uniqueness of the product c. reduce price elasticity of demand by informing consumers of the availability of substitutes d. not alter the demand curve e. generally make the demand curve shift inward
Suppose that IBM considers expanding its operations. The expansion will require $400 million for two new factories which the corporation plans to raise by selling stock and bonds. Which of the core principles will come into play as investors decide whether or not to buy the stock and the bonds?
What will be an ideal response?
The supply curve for a monopoly and for a perfectly competitive industry are virtually identical.
Answer the following statement true (T) or false (F)