The kinked demand curve model explains pricing in monopoly markets
a. True
b. False
Indicate whether the statement is true or false
False
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An increase in price increases consumer surplus
a. True b. False Indicate whether the statement is true or false
In a perfectly competitive market, at the market price, buyers
a. cannot buy all they want, and sellers cannot sell all they want. b. cannot buy all they want, but sellers can sell all they want. c. can buy all they want, but sellers cannot sell all they want. d. can buy all they want, and sellers can sell all they want.
Budget A consists mostly of food, health care and an apartment and Budget B is made up largely of Food, Entertainment, and Travel. If inflation is estimated by the consumer price index which includes all the items listed above and travel and healthcare had the biggest jump in prices, which of the following is true?
A. Budget A will likely have a less accurate estimate than budget B B. There should be no bias in this case because of the simple budget components C. Budget B will likely have a less accurate measurement than budget A D. Inflation will be equally biased for both budgets
If aggregate supply meets aggregate demand in the vertical part of the AS curve, which of the following is a true statement about expansionary policies?
A) Monetary policy will be more effective in increasing output. B) Fiscal policy will be more effective in increasing output. C) Fiscal and monetary policy will be equally effective in increasing output. D) Both monetary and fiscal policies will only cause prices to increase.