When the relationship between two variables changes,
A. The curve becomes linear.
B. There is movement from one point on the curve to another point on the curve.
C. The entire curve shifts.
D. All of the choices are correct.
Answer: C
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The fees physicians charge patients are most closely related to the physicians' cost of
A) acquiring a medical degree. B) earning a target income. C) maintaining their practice. D) spending time with patients.
Price elasticity of demand measures the:
A. slope of the demand curve. B. sensitivity of quantity demanded to changes in the price of substitute goods. C. sensitivity of price to changes in the quantity demanded of substitute goods. D. sensitivity of quantity demanded to changes in price.
Natural monopolies:
A. are the only monopolies that are efficient. B. generally earn zero accounting profits due to regulations. C. can capture the lowest production costs possible for the industry. D. are always protected by government policy.
Which of the following is true about the equilibrium market wage for a particular industry?
a) There is no unemployment in this industry at this wage. b) There is a surplus of workers in this industry since the wage is high. c) All workers in this industry are satisfied with the wage. d) All employers in this industry are satisfied with the wage.