A kinked demand curve
a. results from the heavy advertising expense required.
b. occurs because, when one seller lowers the price, no one else will do so.
c. is a basic characteristic of monopolistic competition markets.
d. tends to be inelastic for price decreases and elastic for price increases.
d. tends to be inelastic for price decreases and elastic for price increases.
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A congested street is ________ in consumption
A) excludable and rival B) non-excludable but rival C) excludable but non-rival D) non-excludable and non-rival
The analysis of Chapter 15 argues that the painfully slow recovery following the Great Recession, in which the accumulation of mistakes during the housing bubble are not being fully corrected, is explained by
A) the Fed's continued attempt to keep interest rates low and "help" the housing sector recover. B) the negative consequences of deficit policies that attempt to "stimulate" the economy. C) both of the above reasons. D) neither of the above reasons.
Government spending that changes automatically without action by Congress is
A) a noncontrollable expenditure. B) national defense. C) payments to contractors for routing services performed. D) discretionary payments.
According to the text, what is not a pre-condition for factory production and industrialization?
a. Standardized parts b. Sufficient power and energy c. Continuous process production d. A sufficiently centralized administrative structure