Which of the following goods probably has the lowest (absolute value) short-run price elasticity of demand?
A) fresh fruit
B) frozen dinners
C) cars
D) refrigerators
A
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An increase in the expected inflation rate will
A) shift the short-run Phillips curve to the right. B) reduce the inflation rate. C) shift the short-run Phillips curve to the left. D) reduce the unemployment rate.
In an effort to serve consumers who have become more health conscious, a number of firms have begun developing small electronic devices which allow people to monitor various health conditions
These firms are reacting to which of the three key economic ideas? A) Optimal decisions are made at the margin. B) Firms attempt to maximize revenues. C) People respond to economic incentives. D) People are rational.
The way in which an oligopolist acts in response to a price change by a competitor is known as a
A) zero-sum game. B) positive-sum game. C) reaction function. D) cooperative game.
The value of a dollar varies
A) inversely with the price of gold. B) inversely with the price level. C) directly with the price level. D) directly with the purchasing power of other major currencies.