Cost-push inflation:
A. reduces real output.
B. increases real output.
C. reduces the unemployment rate.
D. raises the natural rate of unemployment.
Answer: A. reduces real output.
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Suppose the price of beans rises from $1.00 a pound to $2.00 a pound, quantity demanded falls from 10 units to 6 units. In this example, the demand for beans is said to be
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic.
If Good Smells, a perfume manufacturer, purchases several local retail shops to sell their perfumes, this is an example of ________.
A) outsourcing B) divestiture C) backward integration D) forward integration
If Terry sets the agenda for an election, she can possibly manipulate the outcome based on the order of events to be voted on
Indicate whether the statement is true or false
Price in a perfectly competitive market:
A) is affected by government policies. B) is determined by the dominant competitor. C) is affected by the combined decision of all sellers. D) is determined by buyers alone.