Most consumers in stores use marginal analysis to make their buying decisions
a. True
b. False
Indicate whether the statement is true or false
False
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In the above figure, the inflationary gap when AD2 is the aggregate demand curve equals
A) the difference between 110 and 100. B) the difference between $16.5 trillion and $16.0 trillion. C) LAS minus SAS at a price level of 100. D) AD1.
As a result of the superb economics essay that you wrote during this quarter, you won the Adam Smith prize of $100. The receipt of these funds would be an example of
A) the substitution effect being stronger than the income effect. B) the income effect being stronger than the substitution effect. C) a pure income effect. D) a pure substitution effect.
Compared to a perfectly competitive firm, a monopolist:
a. charges a higher price. b. produces lower output. c. fails to achieve an efficient allocation of resources. d. all of these.
In ____, each competing firm is determined to sell at a price that is lower than the prices of its rivals, often regardless of whether that price covers the pertinent cost.
A. market skimming B. a monopoly C. a price war D. perfect competition