Which of the following statements is FALSE?
A) A perfectly inelastic supply curve is a vertical line.
B) Time is an important consideration in determining supply elasticity.
C) Price elasticity of supply can never equal 1.
D) A horizontal supply curve is possible.
C
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A normal good is a good for which the demand increases as income decreases, holding everything else constant
Indicate whether the statement is true or false
Management gets two numbers (price and quantity) from one decision because
a. the marginal utility of goods is fixed. b. producers use both technical and financial information. c. the demand curve consists of price and quantity pairs. d. the average cost curve has only one low point.
When the curve that envelops the series of possible short-run average total cost curves is horizontal, this means that there are:
A. economies of scale. B. diseconomies of scale. C. constant returns to scale. D. diminishing returns.
Which of the following is an example of expansionary fiscal policy?
A. Increase taxes. B. Decrease government spending. C. Increase government spending. D. Increase taxes and decrease government spending equally.