A decrease in price:
A. causes a decrease in total revenue due to the quantity effect.
B. causes an increase in total revenue due to the price effect.
C. does not cause a quantity effect when demand is perfectly inelastic.
D. does not change quantity demanded if demand is elastic.
C. does not cause a quantity effect when demand is perfectly inelastic.
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A monopoly occurs when
A) each of many firms produces a product that is slightly different from that of the other firms. B) one firm sells a good that has no close substitutes and a barrier blocks entry for other firms. C) there are many firms producing the same product. D) a few firms control the market. E) one firm is larger than the many other firms that make an identical product.
Ceteris paribus, bond price and bond yields are
A) inversely related. B) positively related. C) not related. D) associated but not correlated.
What are the roles of Federal Reserve district banks?
What will be an ideal response?
Assuming the economy is experiencing a recessionary gap, classical economists predict that: a. wages will remain fixed
b. monetary policy will sell government securities. c. higher wages will shift the short-run aggregate supply curve leftward. d. lower wages will shift the short-run aggregate supply curve rightward. e. none of the above.