Compared to a monopolistic competitor, a monopolist faces
A) a more elastic demand curve.
B) a more inelastic demand curve.
C) a more elastic demand curve at higher prices and a more inelastic demand curve at lower prices.
D) a demand curve that has a price elasticity coefficient of zero.
Answer: B
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Optimal decisions take into account
A. the resources available. B. the alternatives that were not available to choose. C. the gratification produced by an outcome. D. the effect on the distribution of income. E. the outcomes that are not feasible.
The administrative burden of taxes is:
A. smallest with a lump-sum tax. B. the same if the revenue generated is the same for any kind of tax. C. smaller the larger the amount of the tax. D. the same across all types of taxes.
The original (1958 ) Phillips curve
A) showed that stagflation is inevitable. B) showed the tradeoff between the use of monetary and fiscal policy. C) has never been used as an important economic policy tool. D) suggested a tradeoff between wage inflation and the unemployment rate. E) none of the above
As real GDP increases, ceteris paribus, the slope of the aggregate supply curve
A. decreases. B. increases. C. is always zero. D. remains unchanged.