In monopolistic competition, if a firm produces a highly desirable product relative to its competitors, the firm will be able to raise its price without losing any customers
Indicate whether the statement is true or false
FALSE
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A rise in deposit rates, all else constant, __________ a bank's __________ risk
A) lowers; credit B) lowers; interest rate C) raises; credit D) raises; interest rate
When real consumption expenditure is plotted against real disposable income the resulting relationship is
a. very weak. b. positive and very curvi-linear. c. positive and very close to linear. d. negative and very close to linear. e. virtually flat.
Which is of the following is an example of a progressive tax?
a. An excise tax on a luxury good b. An income tax whose rate increases as income increases c. Medicare tax, which is a percentage of income d. A payroll tax that does not increase beyond a certain level of income
When toilet paper sales increase, quarterly economic growth tends to rise. This is an example of:
A. correlation without causation. B. the presence of ceteris paribus. C. causation with no correlation. D. two variables that are negatively correlated.