The price of a good tends to decrease if there is a shortage of that good in the market
a. True
b. False
Indicate whether the statement is true or false
False
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Compared to a perfectly competitive industry, a single-price monopoly with the same costs will
A) create less consumer surplus. B) create less economic profit. C) create a deadweight loss. D) Both answers A and C are correct.
The least costly way to produce a given level of output is indicated by the point of tangency between a budget line and the production indifference curve corresponding to that level of output.
Answer the following statement true (T) or false (F)
Suppose that the European Central Bank enacts expansionary policy. Everything else held constant, this will cause the demand for U.S. assets to ________ and the U.S. dollar to ________
A) increase; appreciate B) decrease; appreciate C) increase; depreciate D) decrease; depreciate
What are the main determinants of demand elasticity? Explain their importance