Assume a customer of natural gas is negotiating with his supplier over the telephone. At the time prices of all the supplier's competitors are precisely the same
The customer tells the supplier that if he raises his price even one penny he will walk away. What does the perceived demand curve for natural gas look like for this customer? Why?
The elasticity of demand is perfectly elastic. The demand curve is horizontal at the current price. The customer is likely to behave this way since he sees that there are other suppliers willing to offer the same price for essentially what he perceives to be a homogeneous good.
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At the break-even point for the consumption function
A) saving is positive. B) saving is zero. C) saving is negative. D) the marginal propensity to consume equals l.
For the world as a whole, economic freedom increased since 1994 as the countries opened up in the world market and the governments slashed tax rates
a. True b. False Indicate whether the statement is true or false
Which of the following statement(s) best describes trade-offs?
a. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish. b. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase. c. The trade-offs in many production possibilities frontiers are represented by a straight line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to increase. d. The trade-offs in many production possibilities frontiers are represented by a curved line because the law of diminishing returns holds that as resources are added to an area, the marginal gains tend to diminish.
Purchasing power parity is widely accepted as a better explainer of short-run changes in exchange rates than interest rate effects
a. True b. False Indicate whether the statement is true or false