On a downward-sloping linear demand curve, demand becomes more inelastic as price decreases.
Answer the following statement true (T) or false (F)
True
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Economists generally assume
A) individuals act strictly in the public interest. B) individuals are never concerned with the interests of other people. C) individuals rarely promote the projects in which they are interested. D) none of the above.
A contractionary monetary policy can reduce real GDP if expectations are formed rationally and monetary policy is
A) combined with expansionary fiscal policy. B) carried out in total secrecy. C) publicly announced and credible. D) combined with contractionary fiscal policy.
Impulse control problems can arise when people:
A. discount the future too little. B. place too much weight on future costs and benefits. C. place too little weight on current costs and benefits. D. discount the future too heavily.
The market for Product A has many sellers, selling identical products, each earning an economic profit of zero in the long run. The market for Product B has many sellers, selling differentiated products, each earning an economics profit of zero in the long run. Given this information, one can conclude thatÂ
A. The markets for Product A and Product B are perfectly competitive. B. The markets for Product A and Product B are monopolistically competitive. C. The market for Product A is monopolistically competitive and the market for Product B is perfectly competitive. D. The market for Product A is perfectly competitive and the market for Product B is monopolistically competitive.