Of the following, which is the best example of good with a perfectly inelastic demand?
A) the demand for gasoline
B) the demand for tickets in New York City when the Mets or Yankees are in the World Series
C) the demand for a college education by a student who has a full scholarship to an Ivy League school
D) a diabetic's demand for insulin
D
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A monopolistically competitive firm always faces a(n) ________
A) horizontal demand curve B) vertical demand curve C) upward sloping demand curve D) downward sloping demand curve
Which of the following is a characteristic of monopoly in the long run?
A) The firm makes zero economic profit. B) The firm can make an economic profit. C) Price equals marginal cost. D) Price equals marginal revenue.
Making a loan is generally:
A. less risky and less potentially rewarding than buying stock. B. less risky and more potentially rewarding than buying stock. C. more risky and less potentially rewarding than buying stock. D. more risky and more potentially rewarding than buying stock.
GDP understates the amount of economic production in the United States because it excludes:
A. Spending for the U.S. military B. Transfer payments C. Purchases of stocks and bonds D. Work performed by people for their own benefit