The demand for wheat from farm A is perfectly elastic because wheat from farm A is
A) a perfect complement for wheat from farm B.
B) a normal good.
C) a perfect substitute for wheat from farm B.
D) an inferior good.
C
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Deflation is a situation in which the:
A. prices of most goods and services are rising over time. B. quantity of goods and services produced is increasing over time. C. prices of most goods and services are falling over time. D. quantity of goods and services produced is decreasing over time.
Higher protection raises the overall level of employment
Indicate whether the statement is true or false
Suppose that the share of population employed in Country B is 50 percent, and that Countries B and C have the same real GDP per capita. Based on the information in the table, what share of Country C's population must be employed? CountryPopulation (millions)Average Labor Productivity ($)A1002,000B15010,000C7525,000D25050,000E9560,000
A. 5.0 percent B. 20.0 percent C. 50.0 percent D. 40.0 percent
Entrepreneurs in purely competitive industries:
A. have no incentive to innovate because in the long run they will earn no economic profits. B. innovate to lower operating costs and generate short-run economic profits. C. utilize pricing strategies to generate short-run economic profits. D. rarely try to innovate because of a lack of financial resources.