According to the kinked demand curve model, an oligopolist may face
A. more elastic demand than a monopolistic competitor.
B. less elastic demand than a monopolistic competitor.
C. more elastic demand if she raises her price than if she lowers her price.
D. less elastic demand if she raises her price than if she lowers her price.
Answer: C
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________ consumption is consumption that does not depend upon the level of GDP.
A) Autonomous B) Induced C) Voluntary D) Disposable
From the mid 1980s to the present, the United States
a. had only a small current account deficit. b. had a large capital account deficit, which in the balance of payments accounts was financed with a surplus in the current account, which in turn financed investment in excess of domestic saving. c. has had a large current account deficit, which in the balance of payments accounts was financed with a surplus in the capital account, that in turn financed investment in excess of domestic saving. d. None of the above
Since there are no close substitutes for the monopoly's product, the monopoly can charge any price it wishes
Indicate whether the statement is true or false
The fundamental goal of a firm or a business is to
A) produce the largest number of output units possible. B) employ labor in the most socially responsible manner possible. C) organize the factors of production and take risks. D) earn the highest possible returns.