A perfectly elastic long-run supply curve indicates
A. an increasing-cost industry.
B. a decreasing-cost industry.
C. a constant-cost industry.
D. that some input prices change as firms enter and exit the industry.
Answer: C
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If the Herfindahl-Hirschman Index for an industry is 100, then there must be ____ firms in that industry.
A. 1 B. 10 C. 100 D. 1,000
Money that some authority has declared legal tender is called
A) fiat money. B) currency. C) convertible paper money. D) commodity money.Q
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
The cyclical deficit is the portion of the deficit
A) that would exist if the economy were at full employment. B) that does not add to the national debt. C) that is the result of nondiscretionary federal spending. D) created by fluctuations in real GDP. E) that is the result of discretionary federal spending.