Which of the following best describes the eclectic aggregate supply curve?
A. Horizontal until full employment is reached, and then it becomes vertical.
B. Vertical at all output levels.
C. First horizontal, then upward sloping, and finally vertical.
D. Downward sloping.
C. First horizontal, then upward sloping, and finally vertical.
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Using the above figure, which of the following is TRUE?
A) Axis 1 is typically called the y-axis. B) Axis 1 is also known as the origin. C) Axis 2 is typically called the x-axis. D) Point b is known as the origin.
A tax rate system characterized by higher marginal tax rates as income increases is known as
A) a progressive tax system. B) a regressive tax system. C) a proportional tax system. D) a flat-rate tax system.
The kinked-demand curve model of oligopoly:
A. assumes a firm's rivals will ignore a price cut but match a price increase. B. embodies the possibility that changes in unit costs will have no effect on equilibrium price and output. C. assumes a firm's rivals will match any price change it may initiate. D. assumes a firm's rivals will ignore any price change it may initiate.
At a price of $11, quantity demanded is 90; and at a price of $9, quantity demanded is 110. Since total revenue ________ by the price decrease, demand must be ________.
A. is unchanged; elastic B. is unchanged; unit elastic C. is increased; elastic D. is decreased; inelastic