A situation in which output decreases while prices increase is often referred to as:
A. inflation.
B. negative economic growth.
C. a recession.
D. stagflation.
Answer: D
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Which of the following explains why supply is more elastic as more time passes?
A) It is difficult or impossible to increase the quantity produced in a short period of time. B) Consumers have more time to search for substitutes. C) Sellers try to take advantage of a high price in the short term. D) The supply curve becomes generally steeper as more time passes. E) There is no explanation for this phenomenon.
Identify the characteristics of a monopoly firm
a. The existence of barriers to entry and production of a homogeneous product b. The production of a unique product and a large number of sellers in the market c. The production of a standardized product and the firm is a price taker d. The existence of barriers to entry and the firm is a price taker e. The existence of barriers to entry and the firm is a price maker
Can bankers create money? a. No, they do not have this power
b. No, unless they have a special charter which permits it. c. Yes, through multiple deposit creation. d. Yes, by printing checks for customers.
The MLC curve increases for a monopsonist because
a. hiring more workers raises total labor costs b. output price rises as a firm's market power increases c. hiring more workers does not affect wages d. the later workers hired are less productive e. as more workers are hired, all workers receive higher wages