Which of the following statements is true?
A) A monopolist faces an upward sloping demand curve.
B) A perfectly competitive firm faces an upward sloping demand curve.
C) A monopolist can increase the price of its product and not lose all of its business.
D) A perfectly competitive firm can increase the price of its product without losing its business.
C
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An economist who would most likely use active policy making would support which of the following conclusions?
A) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment. B) Pure competition is not typical in most markets. C) Price flexibility is common in most markets. D) Supply shocks explain most business cycles.
If purchasing-power parity holds, a dollar will buy
a. one unit of each foreign currency. b. foreign currency equal to the U.S. price level divided by the foreign country's price level. c. enough foreign currency to buy as many goods as it does in the United States. d. None of the above is implied by purchasing-power parity.