The term "price setter" refers to a firm that faces a downward-sloping demand curve and must therefore set the combination of output and price that will maximize the firm's profits
Indicate whether the statement is true or false
TRUE
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The economizing problem is essentially one of deciding how to make the best use of
A. unlimited resources to satisfy limited economic wants. B. limited resources to satisfy limited economic wants. C. limited resources to satisfy unlimited economic wants. D. unlimited resources to satisfy unlimited economic wants.
Once the demand curve for a product or service is drawn, it
a. remains stable over time. b. can shift either rightward or leftward. c. is possible to move along the curve, but the curve will not shift. d. tends to become steeper over time.
Exhibit 10A-5 Macro AD-AS Model
?
Economic growth is represented in Exhibit 10A-5 by:
A. ?leftward shift in the long-run aggregate supply curve (LRAS). B. ? inward shift of the production possibilities curve. C. ?rightward shift in the long-run aggregate supply curve (LRAS). D. ?movement along the long-run aggregate supply curve (LRAS).
If the income elasticity for lobster is 0.4, a 40 percent increase in income will lead to a:
A. 16 percent increase in demand for lobster. B. 10 percent drop in demand for lobster. C. 4 percent increase in demand for lobster. D. 20 percent increase in demand for lobster.