The short-run aggregate supply line is:
A. upward sloping.
B. downward sloping.
C. horizontal at the current rate of inflation.
D. vertical at the economy's potential output.
Answer: C
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In a cartel, how does the number of firms affect the likelihood that the cartel will be able to successfully maintain a high price?
What will be an ideal response?
The more inelastic the demand for a product, the more the actual burden of a tax on the product will:
a. fall on sellers. b. fall on buyers. c. fall equally on both buyers and sellers. d. create a larger deadweight loss (or excess burden).
The term "labor" for an economist includes
A. only the value of the work done by scientists. B. all employees who have high school diplomas. C. all skilled workers, but not the unskilled workers. D. all productive contributions of humankind.
The demand curve for the product of a monopolistically competitive firm
A) is perfectly elastic. B) is unitary elastic. C) is downward sloping. D) is perfectly inelastic.