If a firm is facing inelastic demand, then the firm should decrease price to increase revenue
a. True
b. False
Indicate whether the statement is true or false
False
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A program under which the government gives all citizens a substantial lump sum payment that is financed by a tax earned income is termed a(n) ________.
A. positive income tax. B. in-kind transfer. C. negative income tax. D. unearned income tax credit.
When confronted with rational expectations regarding changes in monetary policy, the short-run Phillips curve may be vertical
Indicate whether the statement is true or false
Macroeconomics is the branch of economics that focuses on:
a. broad issues such as growth, unemployment, inflation, and trade balance. b. the actions of particular agents within the economy, like households, workers, and business firms. c. the means of production (resources and businesses) that are owned and operated by private individuals or groups of private individuals. d. workers or firms, and whether they are well suited within the overall production process.
Advertising by monopolistically competitive firms can do all of the following EXCEPT
A) lower the consumer's purchase price. B) help differentiate a firm's product. C) act as a signal to consumers that the company is serious about staying in business. D) result in increased profits for the advertising firm.