A horizontal demand curve for a good could arise because consumers
A) are irrational.
B) are not sensitive to price changes.
C) view this good as identical to another good.
D) have no equivalent substitutes for this good.
C
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Which of the following is necessary for a monopolist to price discriminate between groups?
A) The groups are identifiable. B) The groups have different willingness to pay. C) A customer from one group cannot resell to a customer in another group. D) All of the above conditions are necessary for the monopolist to price discriminate.
To close an inflationary gap, the government will
a. run budget deficits b. decrease taxes, leaving government spending unchanged c. increase both taxes and government spending d. run budget surpluses e. legislate a reduction in the rate of inflation
It is likely that for most people:
A. coffee and tea are substitutes. B. coffee and coffee mugs are substitutes. C. coffee and Coke are complements. D. coffee and non-dairy creamer are substitutes.
In the short run there is ________ relationship between the unemployment rate and the rate of inflation.
A. an indeterminant B. no C. a negative D. a positive