Because the supply curve for land is inelastic, the price of land ______.
a. falls when the supply falls
b. is determined by demand
c. does not shift with demand
d. rises when supply falls
b. is determined by demand
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Which of the following factors does not explain the inverse relationship between the price level and the total demand for output?
A. An interest-rate effect B. A foreign-purchases effect C. A real-balances effect D. A substitution effect
The accumulation of international debt increased the debt service requirements of the indebted countries. After the debt crisis began, this caused
A) the adoption of expansionary policies to return to growth. B) large capital inflows to service the debt. C) the adoption of strongly contractionary policies to reduce consumption and government deficits. D) an intensification of industrial policies targeted on import substitutes. E) a reduction in inequality.
Which of the following is the category to which the largest portion of households' personal income is allocated?
a. taxes collected by government b. savings c. purchases of services d. purchases of durable goods e. purchases of nondurable goods
Which of the following examples shows a firm that probably has a monopoly?
a. Birchfield, Inc. exits its market after many other firms enter it. b. After five years, Samson, Inc’s marginal revenue equals its marginal cost. c. BRV, Inc.’s economic profits gradually decline over six years until they reach zero. d. Mongul, Inc. makes large profits for ten years.