A seller who continues to earn the same gross revenue from sales whether she raises or lowers her prices faces a demand curve that
A) contradicts the law of demand.
B) is completely elastic.
C) is completely inelastic.
D) is unit elastic.
E) is vertical.
D
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What is the good or service is given the most weight in the CPI?
A) housing B) apparel C) recreation D) food and beverages E) transportation
In the recent Global Economic Crisis, the negative wealth effect from a 50 percent decline in the stock market caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
An example of monopoly power in input markets is
A) major league baseball owners in the market for player services. B) the United Auto Workers union in the market for auto worker services. C) OPEC in the market for crude oil. D) all of the above
The figure above shows the U.S. production function. How would an increase in unemployment benefits be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in unemployment benefits cannot be shown in the figure.