An important difference between perfect competition and monopoly is
A) a monopoly is profitable and a perfect competitor is not.
B) the monopoly faces a downward sloping demand curve and the perfect competitor faces a horizontal demand curve.
C) the monopoly faces an inelastic demand curve and the perfect competitor faces an elastic demand curve.
D) a monopoly is not regulated by the market, while a perfect competitor is regulated by the market.
Answer: B
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When an economy is experiencing a negative output gap, it means that the:
A. actual output is less than their potential output. B. actual output is more than their potential output. C. price level is rising. D. price level is falling.
Points inside (below) the production possibilities frontier (PPF) are
A) unattainable. B) attainable, but productive inefficient. C) preferable to points that lie on the PPF. D) attainable and productive efficient.
One of the major political developments of the past several decades is the growing size and economic/monetary integration of the European Union. What effect do you think this will have on international trade between countries?
What will be an ideal response?
If two goods are complements, their cross elasticity of demand will normally be
a. zero. b. a negative number. c. a positive number. d. infinity.