What relationship is shown by a demand curve?
What will be an ideal response?
The demand curve shows the relationship between price and quantity demanded. Since price and quantity demanded are inversely related, the demand curve is downward sloping.
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The National Recovery Act:
a. largely redistributed rather than expanded incomes. b. cut unemployment in half. c. was declared unconstitutional by the Supreme Court. d. Both a and b are correct. e. Both a and c are correct.
You are at a restaurant deciding if you would like some dessert after the meal. The dinner is over so you do not want anything else but the dessert. The opportunity cost of getting the dessert would include
a. Nothing, because you are already there b. Another round of appetizers possibly c. Anything else you could buy d. None of the above
If a resource is nonrenewable and we use 2 percent of its supply per year,
a. it will gradually be depleted b. its supply will be constant regardless of use because it has the nonrenewability property c. it will become renewable as its supply approaches zero d. it could never be depleted because 2 percent of a diminishing supply is an increasing amount e. it will decrease at a diminishing rate so that its supply will approach its initial quantity
Which of the following would erode the monopoly pricing power of a firm that was controlling a market?
A. The development of substitutes for the product by other firms. B. New technology developed by the firm that lowered long run average costs. C. A tax on corporate profits. D. All of these would reduce the monopoly power of the firm.