What affects the price elasticity of demand for a monopolist's product?
What will be an ideal response?
A monopolist may have imperfect substitutes for its product. The price elasticity of demand for the product is higher if the product has more of those imperfect substitutes or the better those products are as substitutes.
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Which of the following groups gain from international trade?
i. producers of exported goods ii. domestic consumers of imported goods iii. workers in exporting firms A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
In a proportional income tax system
A) marginal tax rates are the same regardless of the level of taxable income. B) marginal tax rates increase as the level of taxable income increases. C) marginal tax rates decline as the level of taxable income declines. D) everyone pays the same dollar amount in taxes.
There is an inverse relationship between inflation and unemployment in the short run and this can be seen as an
A. example of the equality-efficiency trade-off. B. example of the impact of comparative advantage. C. example of macroeconomic policy choices. D. example of an externality. E. example of the use of abstraction in economic analysis.
When the U.S. real exchange rate appreciates, U.S. goods become
a. more attractive to consumers in the U.S. and abroad. b. more attractive to consumers in the U.S. and less attractive to consumers abroad. c. less attractive to consumers in the U.S. and abroad. d. less attractive to consumers in the U.S. and more attractive to consumers abroad.