According to the law of demand, all else constant, a rise in price will decrease the demand for a good, and a decrease in price will increase demand for a good
a. True
b. False
Indicate whether the statement is true or false
False
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A key difference between a Walrasian market and most auction markets is that in most auction markets
A) transactions occur continuously. B) bid prices exceed offer prices. C) only dealers have complete information. D) offer prices exceed bid prices.
Investment in human capital
A) is quite different from and has a much lower return than investment in physical capital. B) is just like investment in physical capital and has a return similar to that earned from other investments. C) is just like investment in physical capital but has a much greater return than do other investments. D) is not comparable to other investments in any way since human capital is embodied in the person.
A student in a managerial economics class calculated the four-firm concentration ratio and HHI for industries A and B. What is the proper conclusion she can draw from the following findings? Industry AIndustry BFour-firm C0.91HHI3,2002,500
A. C4 is higher for industry A while the HHI is higher for industry B. This inconsistency must be due to a calculation error. B. Industry B is a monopoly. C. The market power of firms in industry A is greater than that in industry B. D. Neither industry is perfectly competitive.
If the economy is experiencing a recessionary gap and the government wants to accelerate the adjustment to the long-run equilibrium, it should
A. reduce aggregate demand by cutting government spending or raising taxes. B. increase aggregate demand by increasing government spending or cutting taxes. C. increase aggregate supply by increasing government spending or lowering taxes. D. increase aggregate supply by cutting government spending or raising taxes.