The investment demand curve is drawn with the ________ on the horizontal axis and the ________ on the vertical axis.
A. expected rate of return and interest rate; amount of investment
B. amount of investment; disposable income
C. amount of investment; expected rate of return and interest rate
D. disposable income; amount of investment
Answer: C
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Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios are
A) both luxury goods. B) substitutes in consumption. C) both inferior goods. D) complements in consumption.
Provide two examples of a government barrier to entry
What will be an ideal response?
If a firm has significant market power, say, over 40 percent, the probability is high that
a. in the long run profits will be zero b. the industry is oligopolistic c. the market is highly competitive d. sales are quite high e. the industry wherein the firm operates has a low four-firm concentration ratio
Persistent high inflation combined with high unemployment in an economy is known as _____
a. disinflation b. stagflation c. hyperinflation d. demand-pull inflation