The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output.
B. government policy.
C. decreasing inflation only.
D. increasing or decreasing inflation.
Answer: D
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If supply is elastic, the supply curve is relatively ________, and if demand is elastic, the demand curve is relatively ________
A) flat; flat B) flat; steep C) steep; flat D) steep; steep
Which of the following statements is true?
a. A monopsony is the only employer of a factor of production. b. A monopsony will pay workers a higher wage and employ fewer workers than a competitive labor market. c. A monopsony has a marginal factor cost curve which lies below its supply curve of labor. d. Unions are becoming a greater influence in American labor markets. e. All of these.
The Public Sector Net Cash Borrowing is:
a) A measure of the government's trade position b) A measure of the government's budget position c) A measure of the government's total debt d) A measure of the government's monetary stance
If you purchased a new model of a digital camera right after it is released you will likely pay more than if you purchase it six months after release. Why is this an example of price discrimination on the part of the firm?
What will be an ideal response?