If demand is perfectly elastic,
A) the smallest increase in price will cause quantity demanded to fall to zero.
B) the smallest increase in price will cause demand to fall to zero.
C) the smallest increase in price will cause quantity demanded to fall.
D) the smallest increase in price will cause demand to fall.
A
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If wages do not fall when there is an excess supply of labor, then ________.
A. there is a speculative bubble in the labor market B. the economy cannot be in a slump C. Say's Law holds D. wages are "sticky downwards"
If an average cost pricing rule is imposed on the natural monopoly in the figure above, then the firm will
A) incur an economic loss. B) make zero economic profit, that is, its owners make a normal profit. C) make an economic profit of $4 million. D) make an economic profit of $9 million.
Suppose that Industry X has two firms with equal market shares, and Industry Y has three firms with 65 percent, 30 percent, and 5 percent market shares, respectively. Which of the following is TRUE?
A) The HHI for Industry X is 50 higher than the HHI for Industry Y. B) The HHI for Industry X is 150 lower than the HHI for Industry Y. C) The HHI for Industry X is 100 higher than the HHI for Industry Y. D) The HHI is the same between Industry X and Industry Y.
A massive selling of domestic currency assets by domestic and foreign financial investors is called:
A. a speculative attack. B. protectionism. C. a currency revaluation. D. a currency devaluation.