In which of the following market structures would X-inefficiency be most likely to exist?
A) Perfect competition.
B) Monopolistic competition.
C) Oligopoly.
D) Monopoly.
Answer: D) Monopoly.
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Which one of the following will cause velocity to increase?
A. Decreasing the interest rates B. Increasing the efficiency of the payments system C. Switching from weekly to monthly payroll checks D. Increasing the money supply
In the circular-flow diagram, payments for labor, land, and capital flow from firms to households through the markets for the factors of production
a. True b. False Indicate whether the statement is true or false
What is workfare?
(A) A state-by-state grant program of aid to the elderly. (B) A program that requires work in exchange for assistance. (C) Welfare that is limited to preschool-age children. (D) An early poverty program from the 1950s.
If demand is inelastic, the absolute value of the price elasticity of demand is
A) one. B) less than one. C) greater than one. D) greater than the absolute value of the slope of the demand curve.