Refer to the above figure. Line ABCD is a(n)
A. aggregate demand curve.
B. natural rate of unemployment curve.
C. Phillips curve.
D. discretionary-policy curve.
Answer: C
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The longer the time period considered, the price elasticity of demand tends to: a. decrease
b. remain constant. c. increase. d. converge to zero.
A fundamental aspect of economics is to
A) ensure that every firm makes a profit. B) analyze how choices are made. C) satisfy all our wants. D) make sure that we always have sufficient resources.
If the price of British pounds in terms of U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is
A. £0.556 per dollar. B. £0.90 per dollar. C. £1.80 per dollar. D. £3.60 per dollar.
Which one of the following statements is a common criticism of the original Bertrand duopoly model?
A) Firms never choose optimal prices as strategic variables. B) Firms would more naturally choose quantities if goods are homogenous. C) The assumption that market share is split evenly between the firms is unrealistic. D) A and B are correct. E) B and C are correct.