A firm facing a horizontal demand curve:
a. cannot affect the price it receives for its output
b. is unlikely to price its goods below market price.
c. faces a perfectly elastic demand curve for its product.
d. is characterized by all of the above.
d
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Politicians and economists who are generally conservative tend to believe that
A. the self-correcting mechanism is slow and unpredictable. B. the short-run Phillips curve is relatively steep. C. the costs of unemployment are high. D. expectations in reaction to policy measures are very slow to change.
In the ___________ model of decision making, each decision builds on the previous one, forming a sequence of decisions, such as the steps involved in preparing a meal
a. Central-satellite b. Foa & Foa c. Elbing d. Chain
Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?
What will be an ideal response?
The ________ states that all else equal, taxes that are neutral with respect to economic decisions are generally preferable to taxes that distort economic decisions.
A. law of tax incidence B. principle of neutrality C. principle of second best D. principle of excess burden