The airline and long-distance telephone service industries are examples of
a. monopolistic competition
b. monopolies
c. oligopolies
d. perfect competition
e. oligopolistic competition
C
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The government uses the buying power of wages rather than face value or nominal value in reporting changes in "real wages" in the economy
Indicate whether the statement is true or false
Why is it inefficient to be overinformed?
What will be an ideal response?
Which of the following statements best explains the effects of transfer payments and taxes on aggregate spending? a. Transfer payments and taxes affect aggregate spending directly, just as consumption does
b. Transfer payments and taxes affect aggregate spending indirectly by first changing disposable income and thereby changing consumption. c. Changes in the amount of transfer payments and taxes cancel each other and therefore have no influence on any economic variable. d. Transfer payments and taxes affect disposable income but have no effect on consumption. e. Transfer payments affect disposable income, but taxes do not.
Assume that product X has a negative cross elasticity with respect to shoes. If the price of shoes rises
A) the demand for product X will decrease. B) the quantity demanded for product X will increase. C) the demand for shoes will fall. D) the demand for product X will increase.