For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment, and the long-run income response tends to be smaller. Industries that face demand behavior of this type are known as:
A. natural monopolies.
B. cartels.
C. cyclical industries.
D. constant-cost industries.
C. cyclical industries.
You might also like to view...
If a rapidly growing population is one of the major problems facing LDCs, explain why a decrease in mortality rates is desirable, from an economic standpoint
The U.S. merchandise trade balance has been in surplus over the last 20 years
Indicate whether the statement is true or false
Why is investment spending a highly volatile component?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) The M2 money supply is larger than the M1 money supply. 2) The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small-denominated time deposit balances and money market mutual fund balances held by individuals. 3) The M2 money supply may be larger or smaller than the M1 money supply depending on the size of small-denominated time deposit balances and money market mutual fund balances held by individuals. 4) Currency and coins held by banks are part of the M1 definition of money supply. 5) Gold backs the U.S. money supply.