The market demand for the product of a monopolistic competitor will likely be
A. relatively elastic.
B. unitary elastic.
C. perfectly elastic.
D. relatively inelastic.
Answer: A
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Suppose that the return on assets other than bonds falls. In the bond market this will result in a(n):
A. increase in the price of bonds. B. movement down the bond demand curve. C. shift to the left of the bond demand curve. D. shift to the left of the bond supply curve.
Use the information in the table below.Percentage of salesIndustry 1Industry 2Industry 3Industry 4Firm 155%45%25%10%Firm 210%35%40%60%Firm 325%20%35%10%Firm 410% 20%According to the Herfindahl index,
A. Industry 3 is more concentrated than Industry 4. B. Industry 1 is more concentrated than Industry 2. C. Industry 3 is more concentrated than Industry 2. D. Industry 1 is more concentrated than Industry 4.
In the real business cycle model, an increase in current total factor productivity
A) increases investment demand. B) decreases investment demand. C) has no impact on investment demand. D) has an ambiguous effect on investment demand.
Additions to inventory are
A) not counted as an expenditure in GDP accounting. B) counted as an intermediate input. C) counted as a component of investment spending. D) subtracted from sales revenue in calculating profit income.