In the case of perfectly elastic demand, the demand curve is:
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: D
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The _________ is the yearly number of births per 1,000 women of childbearing age
a. Fertility rate b. Marriage rate affecting birth rates c. Baby rate d. Mortality rate
Which of the following is the best definition of potential output?
a. The output that could be produced if the economy were above full employment b. The output that could be produced if the economy had no unemployment c. The output that could be produced if the economy had no frictional unemployment d. The output that could be produced if the economy were at full employment e. The output that could be produced if the economy had no structural unemployment
In the classical model, if government tries to increase employment and output by increasing its own purchases,
a. it will achieve its goal and economic conditions will improve b. it will not attain its objective unless it also decreases taxes c. its actions will cause the interest rate to rise, which will choke off investment spending d. firms will be motivated to increase their output, thereby creating even more jobs e. saving will also increase, as more people are employed
A monopolistically competitive industry has
A. many firms producing a differentiated product. B. many firms producing an identical product. C. a few firms producing a differentiated product. D. a few firms producing an identical product.