Which of the following statements is true of the law of demand?
a. All else equal, the quantity demanded of a good is inversely related to its price.
b. All else equal, the demand for a good is inversely related to its price
c. All else equal, the quantity demanded of a good is directly related to its price.
d. All else equal, the demand for a good is directly related to its price.
a
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During the 1990s, which of the following experienced the slowest rate of growth in real GDP per person?
A) Japan B) The big 4 nations of Europe C) United States D) Canada
Since World War II, the consumer price index has increased by an average of _____
a. 1.4 percent per year b. 2.1 percent per year c. 6.4 percent per year d. 5.6 percent per year e. 3.5 percent per year
Common property can lead to market failure
Indicate whether the statement is true or false
A monopolistically competitive firm is currently producing 20 units of output. At this level of output the firm is charging a price equal to $20, has marginal revenue equal to $12, has marginal cost equal to $12, and has average total cost equal to $18 . From this information we can infer that
a. the firm is currently maximizing its profit. b. the profits of the firm are negative. c. firms are likely to leave this market in the long run. d. All of the above are correct.