If the elasticity of supply of a good is zero, then its
A) supply curve is vertical.
B) supply curve is horizontal.
C) demand curve must be vertical.
D) supply curve is positively sloped.
A
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If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
A. fall, causing households and businesses to hold more money. B. rise, causing households and businesses to hold more money. C. fall, causing households and businesses to hold less money. D. rise, causing households and businesses to hold less money.
Because the value of marginal product diminishes as the quantity of labor employed increases, the ________ the wage rate, the ________ workers the firm hires
A) lower; more B) higher; more C) lower; fewer D) None of the above answers is correct because there is no relationship between the wage rate and the number of workers hired.
Use the following statements to answer this question. I. To maximize profit, a firm will advertise more when the advertising elasticity is larger. II. To maximize profit, a firm will advertise more when the price elasticity of demand is smaller
A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
Which of the following are all assets to a commercial bank?
A. Demand deposits, stock shares, and reserves. B. Vault cash, property, and reserves. C. Vault cash, property, and stock shares. D. Vault cash, stock shares, and demand deposits.