A perfectly horizontal demand curve has
A) zero elasticity.
B) some positive finite elasticity.
C) negative elasticity.
D) perfect elasticity.
D
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Chapter 12
What will be an ideal response?
Which statement is true?
A. If the MRP of the last worker hired is higher than the wage rate, the firm has hired too few workers. B. The most important influence on a firm's demand for a factor of production is the demand for the final product. C. A firm will keep hiring more and more of a resource up to the point at which its MRP is equal to its price. D. All of the statements are true.
__________ would cause a leftward shift of the aggregate demand curve.
a. An increase in real wealth b. An increase in expected income c. A decrease in foreign income d. An increase in the expected price level e. A decrease in the value of the dollar
Refer to Figure 16.3. A shift from AS1 to AS2 could be caused by
A. An increase in immigration restrictions. B. A decrease in tariffs on imported goods. C. An increase in OSHA regulations. D. An increase in environmental regulations.