Assume the economy is closed and that it is operating at full employment. Which statement is TRUE when the size of the budget deficit decreases?
A) The increased amount of public goods will crowd out privately produced goods.
B) A reduction in the growth of productivity, and a reduction in society's standard of living will occur.
C) The interest rate will decrease, leading to an increase in investment and capital formation.
D) Demand and supply of credit will increase.
C
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A firm engaging in group price discrimination
A) divides customers into groups and then charges each customer within each group a different price, similar to perfect price discrimination. B) divides customers into groups and then charges each group a different price. C) bundles products into groups and sells the groups at different prices. D) finds the average reservation price for a group of customers and sell its goods at that price.
Total revenues increase as output increases along sections of the demand curve that are:
A. downward sloping. B. price elastic. C. price inelastic. D. upward sloping.
An increase in wages in the public sector is caused solely by increased labor productivity in that sector
a. True b. False Indicate whether the statement is true or false
What is the long-run effect on the demand curve of a monopolistically competitive firm when more firms enter the market?
A. Demand curve shifts to left. B. Demand curve remains the same. C. Demand curve shifts to right. D. Demand curve become flatter.