The demand curve for the product of a monopolistically competitive firm
A) is perfectly elastic.
B) is unitary elastic.
C) is downward sloping.
D) is perfectly inelastic.
Answer: C
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The investment trade-off:
A. is a reduction in current consumption to pay for the investment in capital intended to increase future production. B. is why countries don't devote all their resources to capital investment. C. defines the opportunity cost of capital investment. D. All of these are true.
In the 1980s, several ________________ countries experienced inflation rates of thousands of percent per year
a. Asian b. Southern European c. Eastern European d. Latin American e. African
If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?
a. an economic boom b. highly attractive profit margins c. output less than the economy's long-run potential d. a sharp increase in imports
If most bankers could do what they wanted, they would probably hold reserves of about
A. 0%. B. 2%. C. 7-8%. D. 10-12%. E. 22-25%.