What is the nature of the elasticity of the demand curve faced by perfectly competitive firm?
a. Perfectly inelastic
b. Perfectly elastic
c. Unit elastic
d. Highly elastic
b
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Which theory emphasizes the significance of new discoveries that can be used by many people at the same time?
A) neoclassical growth theory B) new growth theory C) classical growth theory D) None of the above answers are correct.
The term "dirty float" is used to describe:
a. international agreements about fishing rights that were developed in the 1960s. b. the system of exchange rates, which relies primarily on market forces with limited government intervention. c. the inflation that followed price controls implemented by the Nixon administration. d. unsound monetary policy.
The owner of a pizza shop observes that when she raises the price of a large pizza, her total revenue decreases, and when she lowers the price of a large pizza, her total revenue increases. This suggests that:
A. the demand for her large pizzas is inelastic with respect to price. B. there are few good substitutes for a large pizza. C. the demand for her large pizzas is elastic with respect to price. D. pizza lovers act irrationally.
In an economy experiencing a persistently falling price level:
A. potential GDP will necessarily exceed actual GDP. B. changes in nominal GDP may either overstate or understate changes in real GDP. C. changes in nominal GDP understate changes in real GDP. D. changes in nominal GDP overstate changes in real GDP.