The price elasticity of demand for a good produced by a monopolist
A) equals zero as long as the good has no close substitutes.
B) is always inelastic since the demand curve slopes down.
C) does not equal zero because there will always be some substitutes, however imperfect they may be.
D) does not equal zero because every good has at least one good substitute for it.
C
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What are the two tools of fiscal policy that governments can use to stabilize an economy?
A) taxation and controlling exports B) government spending and taxation C) government spending and technology improvements D) taxation and controlling imports
A monopolistically competitive firm's demand curve slopes downward because:
a. new firms are free to enter the market. b. there are a large number of firms in the market. c. a differentiated product gives the firm some monopoly power. d. the firm has complete information about the market. e. the firm sells a standardized product.
In a free market economy,
A. problems with externalities can never be solved. B. public goods will be efficiently provided by the private sector. C. detrimental externalities are rare. D. externalities can be solved by policy makers using market methods.
Which of the following statements is true?
A. GDP is greater than national income, which is greater than NDP. B. Government spending is the largest sector of GDP. C. A Social Security check sent to a retiree is counted as part of GDP. D. The purchase of a new factory is counted in the investment sector of GDP.