Along a straight-line demand curve, the
A. slope is constant.
B. ratio P / Q constantly changes.
C. elasticity grows much smaller toward the right-hand end.
D. All of the responses are correct.
Answer: D
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Suppose that a price index in Paraguay was 131 in 2015 and 152 in 2016. The inflation rate between those two years was approximately
A) 10.5 percent. B) 11.6 percent. C) 16 percent. D) 21 percent.
Which of the following is FALSE about a comparison between a perfectly competitive firm and a monopolistically competitive firm?
A) A perfectly competitive firm has a horizontal demand curve, while a monopolistically competitive firm has a downward sloping demand curve. B) In the short run, a perfectly competitive firm will earn zero economic profits, while a monopolistically competitive firm will earn positive economic profits. C) Both the perfectly competitive and monopolistically competitive firm will earn economic profits equal to zero in the long-run. D) In the long run, the perfectly competitive firm will produce at the minimum of the average total cost curve, while the monopolistically competitive firm will produce to the left of the minimum of the average total cost curve.
Business conduct that is illegal per se is illegal
a. only if there is no economic rationale for it b. only if it results in a monopoly c. without regard to its economic rationale or consequences d. only if it is prohibited by the Clayton Act e. whether or not Congress has passed legislation prohibiting the practice
Protesters insist that the economic benefits of trade have social costs that go unrecognized.
Whether or not you agree with them, make a list of those social costs.