If demand is elastic, then
A. The elasticity number E is less than 1.
B. The elasticity number E is greater than 1.
C. The elasticity number E is 0.
D. The elasticity number E is equal to 1.
Answer: B
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For the long run, neo-Keynesians believe that attempts to decrease the unemployment rate will
a. not succeed but will cause the rate of inflation to rise b. succeed but will also cause the rate of inflation to rise c. succeed and cause the rate of inflation to fall d. not succeed but will cause the rate of inflation to fall e. succeed but only at the expense of real GDP
Which of the following statements concerning a monopolistically competitive industry is correct?
A. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the right. B. If there are short-run economic profits, firms will enter the industry and the demand curves of existing firms will shift to the right. C. If there are short-run losses, firms will leave the industry and the demand curves of the remaining firms will shift to the left. D. If there are short-run economic profits, firms will leave the industry and the demand curves of the remaining firms will shift to the right.
The Sherman Act
A) prohibited banks from crossing states lines. B) prohibited railroads from transporting explosives. C) provided for the regulation of natural monopolies. D) declared that monopolization and restraint of trade were illegal.
Your loss from an increase in interest rates is ________, and your gain from a decrease in interest rates is ________, if you hold a two-year bond compared to holding a one-year bond
A) greater; greater B) greater; less C) less; greater D) less; less