A linear demand curve has a:
A. constant slope and a constant elasticity, but they need not be equal.
B. changing slope, but constant elasticity.
C. constant slope, but changing elasticity.
D. slope which is the same as the elasticity.
Answer: C
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Refer to Figure 16-6. With a two-part pricing scheme - a monopoly price for classes and a one-time membership fee - what is the amount of producer surplus Sensei will earn?
A) an amount equal to the area A + B + C + D + H + G B) an amount equal to the area A + B + C + D C) an amount equal to the area E + F D) an amount equal to the area A + C + H
In the business cycle, what is the difference between the recovery phase and the expansion phase?
A) The expansion phase occurs in the rising portion of the business cycle, while the recovery phase occurs in the falling portion of the business cycle. B) The expansion phase occurs in the falling portion of the business cycle, while the recovery phase occurs in the rising portion of the business cycle. C) The expansion phase is the period when Real GDP increases beyond the recovery phase. D) The expansion phase must always come before the recovery phase.
For the gold standard to achieve its maximum functioning efficiency, central banks should theoretically play the "rules of the game." What are these rules?
(a) Central bank policy should tie the flow of their gold reserves to their current accounts. (b) Central banks should "lean against the wind" and follow policies that offset gold movements. (c) Central banks should raise interest rates as gold flows in and lower them as gold flows out. (d) Central banks should sell securities as gold flows in and buy them as gold flows out.
The dual nature of financial markets in developing countries-traditional and modern-implies that central banks in developing countries:
A. find it more difficult to conduct monetary policy than central banks in developed economies. B. find it easier to conduct monetary policy than central banks in developed economies. C. have effectively no role to play in the conduct of monetary policy. D. play essentially the same role as they do in developed economies.