A firm in a ______________ faces a __________ demand curve
a. perfectly competitive market; perfectly inelastic
b. perfectly competitive market; perfectly elastic
c. monopoly market; perfectly elastic
d. monopoly market; horizontal
b
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If the real interest rate falls, there is
A) a leftward shift of the supply of loanable funds curve and no shift in the demand for loanable funds curve. B) an upward movement along the supply of loanable funds curve. C) a downward movement along the supply of loanable funds curve. D) a rightward shift of the supply curve of loanable funds and no shift in the demand for loanable funds curve. E) a leftward shift of the supply of loanable funds curve and a rightward shift in the demand for loanable funds curve.
"It is difficult to compare over time health care expenditures, costs, and output." Do you agree or disagree? Why?
What will be an ideal response?
Some electrical utilities are monopolies because of
A) government restrictions that prevent new firms from entering the market. B) ownership of resources without close substitutes. C) diseconomies of scale. D) their inability to earn profits.