In perfect competition, the demand faced by a single firm is perfectly
A. elastic, because many other firms produce the same standardized product.
B. inelastic, because many other firms produce the same standardized product.
C. inelastic, because the firm produces a differentiated product.
D. elastic, because the firm produces a differentiated product.
Answer: A
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If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive a greater weight than cheaper items. B. receive the same weight as cheaper items. C. receive a smaller weight than cheaper items. D. are double counted.
Monetarists blame rising government deficits for rising inflation
A) because deficits shift aggregate demand to the right. B) so long as the aggregate supply curve is vertical. C) when financing these deficits involves money creation. D) because the deficits increase the demand for money and thus interest rates.
A higher return on saving ______ the amount a household needs to save to achieve any target level of future consumption. This effect on saving is called the _______ effect. If the income effect is large enough, then a reduction in taxes on saving might ______ tax revenues
Fill in the blank(s) with correct word
If 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest, how many acres of rainforest could be preserved, assuming it costs $40 per acre to preserve the rainforest?
a. Zero acres b. 1,000 acres c. 5,000 acres d. 10,000 acres e. There is not enough information to answer the question Feedback