When a resource has a perfectly inelastic supply curve
A) the amount of economic rent for this resource is determined by its supply.
B) the amount of economic rent for this resource is determined by demand for the resource.
C) the amount of economic rent for this resource is determined by the government.
D) there is no economic rent being earned by this resource.
Answer: B
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Which of the following shifts the aggregate demand curve rightward?
A) a decrease in government expenditure on goods and services B) a decrease in consumption C) an increase in investment D) a decrease in net exports
Which of the following is NOT a characteristic of a perfectly competitive market?
A. It is difficult for a firm to enter or leave the market. B. The products sold by the firms in the market are homogeneous. C. Each firm is a price taker. D. There are many buyers and sellers in the market.
Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.
Figure 6.1Refer to Figure 6.1. Assume Tom's budget constraint is AC. Given his current monthly income he will not have enough income to purchase the bundle represented by point
A. A. B. B. C. E. D. D.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower