Which of the following statements regarding price elasticity of supply and the length of time for adjustment is FALSE?
A. The shorter the time period for adjustment, the smaller is the price elasticity of supply.
B. The longer is the time period for adjustment, the greater is the price elasticity of supply.
C. The longer is the time period for adjustment, the less is the extent to which resources flow into (or out of) an industry through expansion (or contraction) of existing firms.
D. The longer is the time period for adjustment, the greater is the extent to which entry or (exit) of firms increases or (decreases) production in an industry.
Answer: C
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Which of the following statements is correct?
A. Both perfectly competitive and monopolistic firms are price makers. B. Both perfectly competitive and monopolistic firms are price takers. C. A perfectly competitive firm is a price taker, while a pure monopoly is a price maker. D. A perfectly competitive firm is a price maker, while a pure monopoly is a price taker.
The feedback effect can be thought of as a type of
A) social regulation. B) economic regulation. C) creative response, which reduces the law's effectiveness. D) regulatory lag.
Monetarists believe that discretionary monetary policy, and not discretionary fiscal policy, should be used to correct disequilibrium
a. True b. False Indicate whether the statement is true or false
Given a typical demand curve and a decline in price, the consumer who wishes to maximize total utility must increase the quantity purchased of a good to arrive at an optimal MU = P point
a. True b. False Indicate whether the statement is true or false