Taxes, transfer payments, and government purchases are the components of automatic stabilizers.
Answer the following statement true (T) or false (F)
False
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A collusive agreement to form a cartel is difficult to maintain because
A) each member firm can increase its own profits by cutting its price and selling more. B) forming a cartel is legal but frowned upon throughout the world. C) supply will decrease because of the high cartel price. D) demanders will rebel once they realize a cartel has been formed. E) each firm can increase its profit if it decreases its production even more than the decrease set by the cartel.
List the five key determinants of price elasticity of demand and explain how each determinant indicates if demand tends to be elastic or inelastic
What will be an ideal response?
When one person knows more than another, it creates a situation:
A. in which the transaction is always regretted. B. called information asymmetry. C. in which the transaction will not occur. D. called information dominance.
Which of the following is true with regards to a long-run cost function?
a. The shape of the firm's long-run cost function is important in decisions to expand the scale of operations b. The long-run average cost curve is U-shaped c. The long-run average cost curve is flatter than the short-run average cost curve. d. The curve consists of the lower boundary of all the short-run cost curves e. All of the above