Business cycles
a. no loner exist in the new economy.
b. can be eliminated with the appropriate use of fiscal and monetary policies.
c. are usually of equal intensity and length.
d. are a natural consequence of the workings of a free market economy.
d. are a natural consequence of the workings of a free market economy.
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Refer to the graph shown. An effective price ceiling at $3 causes producer surplus to:
A. increase from 80 to 110. B. fall from 80 to 30. C. fall from 120 to 30. D. increase from 30 to 120.
Complaints about predatory pricing usually originate with
A) competitors. B) consumers. C) economists. D) government regulators. E) suppliers.
Which of the following indicates that economies of scale have been overridden by other factors?
a. A company seeking to save on architect's fees during its move to Maryland copies the same building it used in San Francisco, so now it occupies the only office in Baltimore built to withstand earthquakes. b. The workers on the night shift at the Roadkill Diner, having no customers of their own, peel 400 potatoes, fill 300 catsup bottles, fry 100 pounds of bacon, and brew 80 quarts of coffee for the morning shift. c. Denny's Restaurant serves potatoes with its breakfasts nationwide, but in the South you can get grits instead. d. The Creepy Critters Summer Camp decides not to give campers a choice between hamburgers and hot dogs but makes creamed chipped beef on toast for everybody. e. Henry Ford said that his customers could have any color car they wanted, as long as they wanted black.
For a given decrease in demand, the effect on price is smallest and the effect on quantity exchanged largest when: a. supply is perfectly elastic
b. supply is elastic. c. supply is unit elastic. d. supply is perfectly inelastic.