Which of the following best describes the distinguishing characteristics of business cycles?
What will be an ideal response?
Periods of growth in real output followed by periods of decline.
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Compared with price searchers' markets, price takers' markets are likely to result in
A) less advertising. B) less competition. C) lower output. D) more profit.
In this problem, demonstrate your knowledge of percentage rates of change of an entire demand function (HINT: %?Q = EP•%?P + EY•%?Y). You have found that the price elasticity of motor control devices at Allen-Bradley Corporation is -2, and that the income elasticity is a +1.5 . You have been asked to predict sales of these devices for one year into the future. Economists from the
Conference Board predict that income will be rising 3% over the next year, and AB's management is planning to raise prices 2%. You expect that the number of AB motor control devices sold in one year will: a. fall .5%. b. not change. c. rise 1%r. d. rise 2%. e. rise .5%.
The product supplied by a monopoly firm has
A. a few substitutes. B. no close substitutes. C. a large number of substitutes. D. two or three close substitutes.
Since roughly 1970, the U.S. has moved from being a
A. small net creditor nation to a much larger net creditor nation. B. net importer of goods and services to being a net exporter of goods and services. C. net creditor nation to being a net debtor nation. D. net debtor nation to being a net creditor nation.