Deflation refers to a situation in which
A) the inflation rate decreases.
B) the average of all prices is falling.
C) there is a recession and inflation.
D) prices are not changing.
B
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If the cross elasticity of demand for DVD players and DVDs equals -2, then the products are
A) unrelated. B) complements. C) inferior goods. D) substitutes. E) normal goods.
Which of the following is not a characteristic of less-developed countries?
a. High rates of illiteracy. b. High unemployment. c. Over half of the labor force in agriculture. d. Low savings and investment rates. e. Low infant mortality rates.
Ceteris paribus, in which of the following cases would we expect economic profits to be greatest? a. an unregulated monopolist who is able to price discriminate
b. an unregulated monopolist who is unable to price discriminate. c. a regulated monopolist required to charge a price no greater than marginal cost. d. a regulated monopolist required to charge a price no greater than average cost.
Figure 3-1
Which of the following is true regarding the market for steak shown in ?
a.
If the price of steak were $2 per pound, producers would want to supply less steak than consumers would want to buy.
b.
If the price of steak were $4 per pound, producers would want to supply more steak than consumers would want to buy.
c.
If the price of steak were $3 per pound, producers would want to supply the same amount of steak that consumers would want to buy.
d.
All of the above are true regarding the market for steak shown in the figure.