The kinked demand curve model is based on the assumption that each firm
A) considers its rival's output to be fixed.
B) considers its rival's price to be fixed.
C) believes rivals will match all price changes.
D) believes rivals will never match price changes.
E) none of the above
E
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If the international value of the dollar rises, the
A. aggregate demand curve will shift inward. B. aggregate supply curve will shift outward. C. U.S. price level will fall. D. All of these responses are correct.
A point on the production possibilities frontier reflects an
A) attainable point with full employment of all resources. B) attainable point without full employment of all resources. C) unattainable point with full employment of all resources. D) unattainable point without full employment of all resources. E) None of the above answers is correct.
Wealth differs from income in that
A) income measures value at a point in time and wealth measures value over a period of time. B) income measures value over a period of time and wealth measures value at a point in time. C) income is what you own and wealth is what you earn. D) wealth can be measured in dollars and income cannot.
What is the source of the gains from trade?
What will be an ideal response?