For a given increase in supply, the condition of demand that will result in the most significant change in quantity is when demand is
A. inelastic.
B. perfectly inelastic.
C. perfectly elastic.
D. elastic.
Answer: C
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Changes in autonomous consumption could be the result of:
A. changes in inflation. B. changes in disposable income. C. changes in housing prices. D. changes in the mpc.
When a local casino spends millions in TV ads convincing town residents to reject another casino's bid to operate in the area, the casino is:
A. rent seeking. B. seeking rent controls. C. acting fraudulently. D. allocating resources efficiently.
Japan's status as a rich nation is attributable to
a. Japan's quantities of natural resources, but not to international trade. b. international trade, but not to Japan's domestic quantities of natural resources. c. the fact that Japanese productivity has remained nearly constant for more than 100 years. d. the fact that the Japanese have downplayed the role of human capital in economic growth.
The key characteristics of a monopolistically competitive industry? are:
?[A] A large number of firms that sell differentiated products that are close substitutes. ?[B] Firms can easily enter or exit a monopolistically competitive industry. ?[C] Because monopolistically competitive firms can increase their profits if they can successfully distinguish their products from those of their? rivals, they have an incentive to engage in sales promotions and advertising.