A perfectly elastic demand curve will:
a. be a vertical straight line.
b. be a downward sloping straight line.
c. be a horizontal straight line.
d. be an upward sloping straight line.
C
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According to the diagram in the figure above, what is the marginal cost of producing the 3 millionth gallon of gasoline per month?
A) 5 pounds of shrimp per gallon of gasoline B) 4 pounds of shrimp per gallon of gasoline C) 3 pounds of shrimp per gallon of gasoline D) 1 pound of shrimp per gallon of gasoline
Are there any types of market failure that result in the underproduction of a good? Explain
Suppose you pre-ordered a non-refundable movie ticket to Avengers: Infinity War. On the day of the movie you decide that you would rather not go to the movie. According to economists, what is the rational thing to do?
A) Since you do not want to go to the movie and the cost of the movie ticket is a sunk cost, how much you paid for the ticket should not influence your decision. B) You should not waste resources. Since you have paid for the ticket you should watch the movie. C) Your should go to the movie to minimize your losses. D) You should go to the movie to maximize your utility.
A financial crisis is:
A. a sharp increase in asset prices that prevents new investors from being able to afford to purchase assets. B. a gradual decline in the value of a country's currency that leads to a prolonged economic downturn. C. a sharp decline in asset prices that forces borrowers to sell off additional assets, further depressing prices. D. a sharp drop in the unemployment rate, leading to hyperinflation.