In the above figure, which movement illustrates the impact of the price level and money wage rate rising at the same rate?
A) E to H
B) E to K
C) E to G
D) E to J
C
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All of the following are advantages of organizing a business as a sole proprietorship EXCEPT
A) ease of formation. B) limited liability. C) ease of decision-making. D) single taxation.
Will all monopolistic firms always generate economic profits? Why or why not?
A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold 33% less milk. Since everything else remained the same, we would say the
a. demand for milk is perfectly elastic b. demand for milk is elastic c. demand for milk is perfectly inelastic d. demand for milk is unitary elastic e. law of supply does not apply in this situation
45° line diagrams show how
a. investment varies with income. b. expenditures vary with income. c. investment spending rises when GDP rises. d. GDP is affected by government purchases.