If the demand curve shifts but the supply curve does not and price remains the same, supply must be perfectly inelastic
a. True
b. False
B
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According to classical economists, unemployment exists because
A) it takes time and effort for someone to find a job. B) government activity causes unemployment. C) the minimum wage generates unemployment. D) workers are all identical.
For a perfect first-degree price discriminator, incremental revenue is
A) greater than price if the demand curve is downward sloping. B) the same as the marginal revenue curve if the firm is a non-discriminating monopolist. C) equal to the price paid for each unit of output. D) less than the marginal revenue for a non-discriminating monopolist.
Suppose that in an industry, firm X has 50 percent market share, firm Y has 35 percent market share, and firm Z has 10 percent market share. Which of the following mergers is NOT likely to be challenged by the Federal Trade Commission?
A) a merger between firms X and Y B) a merger between firms Y and Z C) a merger between firms X and Z D) Any merger of two firms among those firms is likely to be challenged.
Keynesian economists, like classical economists, believed that prices and wages were flexible in both directions
Indicate whether the statement is true or false