If the quantity demanded is infinitely responsive to any change in price, the demand curve is:
A. upward sloping.
B. downward sloping.
C. horizontal.
D. vertical.
Answer: C
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A theory is an abstraction used often by economists to
A. describe a problem. B. keep all assumptions in their proper places. C. explain why things work the way they do. D. describe a hierarchical ordering of facts. E. arrange variables into a graphical format.
The long-run aggregate supply curve is vertical at $16 trillion but the short-run aggregate supply curve intersects the aggregate demand curve at $17 trillion. We know that
A) the economy is producing below full employment in the short run, and will adjust by hiring more workers, thus decreasing unemployment. B) the price level is too high. The long-run equilibrium will occur with a lower price level. C) adjustments will occur so that the long-run aggregate supply equals $17 trillion. D) adjustments will occur so that the short-run aggregate supply eventually intersects the aggregate demand curve at $16 trillion.
Which of the following is TRUE about firms organized along functional lines?
a. Workers find it difficult to develop functional expertise b. Workers can easily share information within their division c. They inhibit the exploitation of economies of scale d. All of the above
The reason that Blu-ray movies cost more money immediately after they are released than they do six months later is due to price discrimination.
Answer the following statement true (T) or false (F)