A monopolist always faces a demand curve that is:
a. perfectly inelastic.
b. perfectly elastic.
c. unit elastic.
d. the same as the entire market demand curve.
d
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In the Keynesian model, consumption depends on:
A. the natural rate of unemployment. B. potential output. C. disposable income. D. whether the government has a budget surplus or deficit.
Why do U.S. government loans generally pay a low interest rate?
What will be an ideal response?
A decrease in the price of rice from 50 cents to 40 cents a pound increases consumption from 16 to 20 tons a week in Gainesville and from 160 to 200 tons in the larger city of Miami. The elasticity of demand for rice is
A. greater in Miami than in Gainesville, even taking into account the population difference. B. greater in Gainesville than in Miami in spite of the population difference. C. equal in Gainesville and Miami regardless of the population difference. D. impossible to compare because of the population difference.
You are given the following linear consumption function: C = 200 + 0.80Yd. What is the size of the autonomous consumption expenditures and induced expenditures?
What will be an ideal response?