When firms incur unplanned inventories, they typically
a. build new plants.
b. call for more government spending.
c. hire more workers and increase production.
d. lay off workers and reduce production.
D
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The more time people have to adjust to a price change:
A. will not affect the elasticity of their response unless it is a luxury good. B. the less elastic their demand will be. C. the more elastic their demand will be. D. will not affect the elasticity of their response unless the good is a necessity.
Naturally born members of the U.S. population resisted immigration in the antebellum period for all of the following reasons except
(a) Immigrants were prisoners and outcasts from other countries. (b) Immigrants could gain political power and possess political influence. (c) Immigrants displaced U.S. born laborers. (d) Immigrants brought their own religions and spiritual beliefs.
The market structure in which the largest quantity of output is sold at the minimum possible price is:
a. monopoly. b. perfect competition. c. oligopoly. d. monopolistic competition. e. monopsony.
Which of the following descriptions best depicts the substitution effect?
a. the change in consumption resulting from a change in the consumer's income, holding the prices of the goods constant b. the change in consumption resulting from a change in the consumer's income, holding the consumer's level of satisfaction constant c. the change in consumption resulting from a change in the price of one good, holding the consumer's level of satisfaction constant d. the change in consumption resulting from a change in the price of one good, allowing the consumer's level of satisfaction to change