According to the CPI basket, the largest item in the households' budgets is
A) apparel.
B) education.
C) food.
D) transportation.
E) housing.
E
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What happens to the price elasticity of demand moving down along a downward-sloping, linear demand curve?
What will be an ideal response?
Why do firms in monopolistic competition operate with excess capacity?
What will be an ideal response?
If the Fed wanted to prevent a change in money demand from affecting real GDP, which of the following responses would it choose?
a. A neutralization response b. A constant interest rate response c. A constant money supply response d. A constant tax rate response e. A constant government spending response
To maximize profits, a firm should produce output up to the point where
A. marginal revenue equals marginal cost. B. price equals marginal revenue. C. the gap between the demand curve and the ATC is the greatest. D. None of the choices are correct.