The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic.
B) upward sloping.
C) downward sloping.
D) perfectly elastic.
Answer: D
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Quantitative easing is likely to lead to a(n) ________
A) increase in unemployment rate B) decrease in the price level C) increase in the federal funds rate D) decrease in the federal funds rate
The change in the cost of living over time is referred to as:
A. inflation. B. substitution bias. C. a fixed-weight price index. D. real income.
Suppose that college tuition is higher this year than last year and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that:
A. despite the increase in price, quantity demanded rose due to some other factor changing. B. the demand for a college education is positively sloped. C. this situation has nothing to do with the law of demand. D. the law of demand is invalid.
If the percentage change in price is 2 and the percentage change in quantity supplied is 10, supply is:
A. unaffected by price changes. B. inelastic. C. unit elastic. D. elastic.