The demand for the product of a competitive price-taker firm is:

a. perfectly inelastic.
b. perfectly elastic.
c. greater than zero but less than one.
d. dependent on the availability of substitutes for the firm's product.


b

Economics

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The self-correcting property of the economy means that output gaps are eventually eliminated by:

A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.

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The share of GDP taken by taxes has increased dramatically since the 1960s.

Answer the following statement true (T) or false (F)

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If the measured unemployment rate is 6% and the natural unemployment rate is 4%, then

A. cyclical unemployment is 2%. B. frictional unemployment is -2%. C. structural unemployment is 10%. D. frictional unemployment is 2%.

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Discuss the changes in regulations of financial firms during the 1990 and whether the proposed benefits occurred.

What will be an ideal response?

Economics