Given the proportion of a consumer’s income spent on various goods, the demand for is likely to be the most price inelastic.
Ans: candy bars
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A monopolistic competitor earns zero economic profits if ________
A) price is higher than average total cost B) price is lower than marginal cost C) price is equal to marginal cost D) price is equal to average total cost
In the short run, the monopolistic competitive firm will charge a price equal to marginal cost
a. True b. False Indicate whether the statement is true or false
During the last half of 2012, the U.S. unemployment rate was just under 8 percent. Historical experience suggests that this is
a. above the natural rate, so real GDP growth was likely low. b. above the natural rate, so real GDP growth was likely high. c. below the natural rate, so real GDP growth was likely low. d. below the natural rate, so real GDP growth was likely high.
A federal funds rate reduction that is caused by monetary policy will:
A. increase the prime interest rate. B. decrease the size of the monetary multiplier. C. increase the Fed's discount rate. D. decrease the prime interest rate.