When a firm's competitors cut their prices when the firm does, but do not raise their prices when the firm does, the result is that the firm has a kinked demand curve
Indicate whether the statement is true or false
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A shift in the demand curve will occur when
A) supply shifts. B) the price of an input used to produce the good changes. C) consumers' income changes. D) the price of the product changes.
Total factor productivity in railroads _____________ in the 20 years prior to the Civil War
a. decreased slightly b. remained largely unchanged c. increased by about 25 percent d. more than doubled
The substitution effect occurs when a good becomes more expensive and people seek out alternative goods
a. True b. False Indicate whether the statement is true or false
The statement that "measures of the distribution of income are based on money income" relates to which problem in measuring inequality?
a. in-kind transfers b. economic life cycle c. transitory versus permanent income d. economic mobility