In the case study discussed in the chapter, the electronics firm was actually enhancing its profits by selling calculators at a price that was below average cost

In the traditional Keynesian model, an increase in government spending

A) causes the C + I + G + X line to shift upward by the full amount of the increase in government spending. B) causes the C + I + G + X line to shift upward by an amount less than the increase in government spending. C) causes the C + I + G + X line to shift upward by more than the increase in government spending. D) causes no change in the C + I + G + X line.

Which of the following is more likely to have perfectly elastic or nearly perfectly elastic demand?

A) a textbook required for an economics course B) the guitar produced by a master craftsman C) milk produced by a Wisconsin dairy farmer D) the services offered by the only allergist in the community