The income effect due to a price decrease will result in an increase in the quantity demanded for
A) an inferior good. B) a public good. C) a Giffen good. D) a normal good.
D
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For a natural monopoly to exist
A) a firm must continually buy up its rivals. B) a firm must have a government-imposed barrier. C) a firm's long-run average cost curve must exhibit diseconomies of scale beyond the economically efficient output level. D) a firm's long-run average cost curve must exhibit economies of scale throughout the relevant range of market demand.
A temporary supply shock that raises prices will cause the real interest rate to
A) rise in both the short and long runs. B) rise in the short run but not in the long run. C) fall in both the short and long runs. D) fall in the short run but not in the long run.
Which statement best describes the relationship between steamboats, keelboats and flatboats on the Mississippi River in the antebellum period?
a. Steamboats were substitutes for both keelboats and flatboats. b. Steamboats were complements for both keelboats and flatboats. c. Steamboats were substitutes for keelboats and complements for flatboats. d. Steamboats were substitutes for flatboats and complements for keelboats.
The slope of an isocost line is equal to:
A. -(wage rate/rental rate of capital). B. (wage rate/rental rate of capital). C. -(rental rate of capital/wage rate). D. (rental rate of capital/wage rate).