When a resource has a perfectly inelastic supply curve
A. there is no economic rent being earned by this resource.
B. the amount of economic rent for this resource is determined by the government.
C. the amount of economic rent for this resource is determined by its supply.
D. the amount of economic rent for this resource is determined by demand for the resource.
Answer: D
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Choose the letter of the diagram in Figure 36.2 that represents the shift in the foreign exchange market for dollars given the following situation, ceteris paribus: The Japanese remove some tariffs on American goods.
A. a. B. b. C. c. D. d.
Which of the following is an assumption on which time series regression is based?
A. A time series process follows a model that is nonlinear in parameters. B. In a time series process, no independent variable is a perfect linear combination of the others. C. In a time series process, at least one independent variable is a constant. D. For each time period, the expected value of the error ut, given the explanatory variables for all time periods, is positive.
There is no long-run trade-off between inflation and unemployment.
Answer the following statement true (T) or false (F)
Horizontal merger occurs when
A) two firms merge where one had sold its output to the other as an input. B) the merger moves the combined firm onto the horizontal portion of its long-run average cost curve. C) two firms merge where each is about the same size. D) two firms producing a similar product merge.