If the supply of a good is inelastic, a decrease in price must increase total revenue
a. True
b. False
Indicate whether the statement is true or false
False
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Protectionism arises because
a. people misunderstand the benefits of free trade b. trade generally harms some groups in society c. the costs of free trade outweigh the benefits for all groups in society d. the costs of trade for both exporting and importing nations outweigh the benefits e. of a lack of comparative advantage
Serious concern for deregulation began to appear in Congress in the 1970s
a. True b. False Indicate whether the statement is true or false
Does the Fed have good control over the money supply?
A. Yes, open-market operations generate exact changes in bank lending. B. Yes, reserve requirements create new loans. C. No, because of difficulties estimating the reserve ratio. D. No, because of difficulties estimating the size of the excess reserves and cash holdings by the public.
What is the relationship between marginal cost and the short-run supply curve for the purely competitive firm?
What will be an ideal response?