Price elasticity of demand depends on all of the following except:
A. the amount of time a consumer has to adjust to price changes.
B. the sensitivity of firms' output to changes in the product's price.
C. the consumer's income.
D. the availability and closeness of substitutes.
Answer: B
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Many public utilities are permitted to operate as monopolies because they enjoy economies of large-scale production.
Answer the following statement true (T) or false (F)
Monopolies that price discriminate do so because
A) they are able to do so and no one else can. B) they can increase their profits. C) it keeps them out of trouble with the government. D) it is more efficient.
Because of differences in tax treatment, municipal bonds pay a higher interest rate than do corporate bonds
a. True b. False Indicate whether the statement is true or false
In the long run, inflation
a. and unemployment are primarily determined by labor market factors. b. and unemployment are primarily determined by the rate of money supply growth. c. is primarily determined by the rate of money supply growth while unemployment is primarily determined by labor market factors. d. is primarily determined by labor market factors while unemployment is primarily determined by the rate of money supply growth.