When demand is perfectly inelastic with respect to price, the demand curve is horizontal
Indicate whether the statement is true or false
FALSE
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To maximize expected profit, a perfectly competitive firm with a random marginal cost and random demand should produce at the level that sets ________ equal to ________.
A) price; expected marginal cost B) price; marginal cost C) expected price; marginal cost D) expected price; expected marginal cost
Which of the following is a major area of disagreement between activists and nonactivists?
a. Activists believe discretionary macroeconomic policy can be applied in a manner that will enhance economic stability. Nonactivists disagree. b. Activists believe monetary policy is more potent than fiscal policy. Nonactivists disagree. c. Activists believe changes in monetary and fiscal policy exert their effects instantaneously. Nonactivists think they work only with a substantial lag. d. Nonactivists think macroeconomic policy is sometimes motivated by the pursuit of political gain. Activists disagree.
Which statement is true?
A. The Sherman Act modified the Clayton Act. B. The Sherman Act prohibits price discrimination. C. The Sherman Act prohibits interlocking directorates. D. None of these statements are true.
Local property taxes are a
A. Progressive tax because the total tax on housing increases as the price of the house increases. B. Progressive tax because as income increases people tend to buy more expensive houses. C. Regressive tax because poorer people spend a larger portion of their income on property taxes. D. Proportional tax because properties are taxed at the same rate regardless of the value of the home.