If the supply curve is vertical, then supply is
A. perfectly elastic.
B. relatively elastic.
C. unit elastic.
D. perfectly inelastic.
Answer: D
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The stabilization policies of government are most likely to promote
A) high employment. B) price stability. C) reduced aggregate fluctuations. D) the interests of those who plan and execute them. E) the interests of the majority of voters.
Trade without serious income distribution effects is most likely to happen
A) in sophisticated manufactures trade between rich countries. B) in simple manufactures trade between developing countries. C) in sophisticated manufactures trade between rich and poor countries. D) in agricultural trade between rich countries. E) in labor-intensive industries like clothing.
Assume firm X is one of the three largest firms in an oligopolistic industry. Firm X is currently considering a vertical merger with another firm that is the sole supplier of an input used by all of the firms that compete with firm X
If the merger goes through, firm X would be able to operate much like: A) a perfectly competitive firm. B) a monopolistically competitive firm. C) an oligopolist. D) a monopolist.
The cross-price elasticity of demand refers to:
A. the substitution of one good for another as the prices of two goods change. B. a change in the demanded for two goods, following a change in the price of one good. C. the value of price elasticity at which supply crosses demand. D. the percentage change in the quantity demanded of one good resulting from a 1-percent increase in the price of another good.