If a firm is a price taker, it operates in a
a. competitive market.
b. monopoly market.
c. oligopoly market.
d. monopolistically competitive market.
a
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In the table above, country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. The opportunity cost of producing more of
A) good X is the same for both countries. B) good Y is the same for both countries. C) good X is lower in country A. D) good Y is lower in country A.
When the Treasury borrows from the non-bank public and makes an expenditure of an equal amount, the money supply
A) rises by a multiple of the expenditure. B) rises by an amount equal to the expenditure. C) rises by an amount less than the expenditure. D) is unaffected.
If a firm in an oligopoly is said to face a kinked demand curve, what do you know to be true about the kink?
a. It represents the maximum price and profit. b. It occurs at the only output level where the firm suffers loss. c. It occurs where marginal revenue is zero. d. It is not a characteristic of an oligopoly. e. It occurs at the current price.
An adverse supply shock shifts the short-run Phillips curve right. If people raise their inflation expectations, the short-run Phillips curve shifts farther right
a. True b. False Indicate whether the statement is true or false