Comment on the following: "A monopolist is a firm that can raise its price without experiencing a decrease in its total revenue."
What will be an ideal response?
This statement describes a firm for which demand is price inelastic. Because a profit maximizing monopolist sets its price on the elastic portion of the demand curve, this statement is false.
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Unemployment that results from the seasonal pattern of work in specific industries is
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) seasonal unemployment.
An economy does not move smoothly from recession to growth because of:
a. differing regional labor codes. b. seasonal fluctuations and random disturbances. c. consumers who do not know what to buy. d. policymakers who do not know what to do.
The aggregate supply curves shown in the model in Figure 18.3 are most consistent with the views of
A. Monetarists. B. Keynesians. C. Modern Keynesians. D. Supply-siders.
Refer to the graph shown. From 1980 to 1985, the U.S. dollar appreciated over 60 percent. The effect of this appreciation on the AD curve can be shown by a movement from:
A. A to B. B. A to C. C. A to D. D. B to A.