A monopolist can raise its price further above marginal cost, the more ______ is the ______ for its product.
Fill in the blank(s) with the appropriate word(s).
Answer: inelastic; demand
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If consumers spend their money only on beef and vegetables, then the substitution effect of an increase in the price of beef would result in consuming ________ beef and ________ vegetables
A) more; more B) less; fewer C) more; fewer D) less; more
In terms of the numbers of firms in the U.S. economy, the most common type of firm is the
a. corporation b. partnership c. sole proprietorship d. nonprofit organization e. limited partnership corporation
The government might increase its spending to end a recession because:
A. allowing the short-run aggregate supply to adjust since back to the long-run can take a long time. B. the economy experiences lower prices at the long-run equilibrium. C. the economy enjoys a higher level of output in the long run. D. None of these justify why the government might change its spending to end a recession.
The labor supply curve is generally considered to be upward-sloping because the opportunity cost of leisure:
A. increases as wages get higher. B. has nothing to do with wages. C. decreases as wages get higher. D. remains unchanged as wages get higher.