A situation where one manufacturer controls the supply of a good is called:
Answer
An oligopoly
A monopoly
A free market
A command economy
Question 2
Question
Cross Elasticity of Demand:
Answer
shows the relationship between price and quantity demanded and provides a calculation of the effect a change in price would have on quantity demanded.
shows how responsive demand of a good is to the change in income of a person. It is calculated by dividing the percentage change in quantity demanded by the percentage change in personal income.
measures the responsiveness of the quantity demanded of one good or service as a result of the change to the price of another good or service.
Question 3
Question
According to J.M. Keynes, free markets will automatically lead to full employment
Answer
True
False
Question 4
Question
Which of these best describes inflation:
Answer
the rate at which the general level of prices of goods and services is increasing
a reduction in the unemployment rate
an increase in the average industrial wage
Question 5
Question
Inflation means that the purchasing power of currency decreases
Answer
True
False
Question 6
Question
The Wealth of Nations is a work by which economist