A monopolistic competitor faces a horizontal demand curve
a. True
b. False
Indicate whether the statement is true or false
False
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Steel workers laid off from their jobs as the result of a recession are considered
A) seasonally unemployed. B) cyclically unemployed. C) frictionally unemployed. D) structurally unemployed.
A 5 percent increase in income leads to a 10 percent decrease in quantity demanded for a service. This service is a(n) __________ good and demand is __________
a. normal; elastic
b. normal; inelastic
c. normal; unit elastic
d. inferior; elastic
e. inferior; inelastic
Suppose that the percentage change in demand is 10%, the price elasticity of supply is 2, and the percentage change in the equilibrium price is 3.33%. What is the price elasticity of demand?
A. 0 B. 1 C. 2 D. 3
In economics, investment always refers to
A. the creation of capital. B. an increase in per capita output. C. increasing the quantity of labor. D. the act of buying stocks or bonds.