If a particular perfectly competitive industry uses only a small fraction of the supply of any of its inputs, the long run supply curve for that industry will tend to be:
a. vertical
b. upward sloping.
c. horizontal.
d. downward sloping.
c
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Use the following given market-for-money diagrams to answer the next question.
The asset demand for money is shown by
A. D1. B. D2. C. D3. D. S.
When the nominal interest rate increases, the quantity of credit card services
A) increases. B) decreases. C) stays constant. D) moves in unpredictable ways.
All of the following are true for the leader firm in a Stackelberg oligopoly with a linear demand and marginal cost except which one?
A) The leader earns more profit than the follower second firm. B) The leader earns more profit than if it operated in a Chamberlin oligopoly. C) The leader has first-mover advantage. D) The leader takes the follower second firm's best-response production into consideration when determining its output level.