If the price elasticity of demand for a good equals one, then the demand for that good is:
A. inelastic.
B. elastic.
C. unit elastic.
D. perfectly elastic.
Answer: C
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What is oligopoly? How does oligopoly differ from the other kinds of market structure?
What will be an ideal response?
The unemployment rate:
a. Tends to be more stable than the employment rate. b. Has more reliable components (in terms of measurability) than the employment rate. c. Always falls when the employment rate rises. d. Always rises when the employment rate rises. e. Is considered to be a poorer measure of business cycle activity than the employment rate.
Using the money demand and money supply model, an open market purchase of Treasury securities by the Federal Reserve would cause the equilibrium interest rate to
A) increase. B) decrease. C) not change. D) increase if the economy is in a recession.
Assume Robbie's Robots operates in a perfectly competitive market producing 3,000 robots per day. At this output level, the selling price is $800 per robot and the marginal cost is $825 per robot. To maximize profits, Robbie's Robots should
A. make no adjustments as they are already maximizing their profits. B. increase their output. C. decrease their output. D. stop producing since it is earning a loss.