If the demand curve is a vertical line, then
a. demand is perfectly elastic
b. demand is perfectly inelastic
c. demand is unit elastic
d. demand is determined by supply
e. supply is a horizontal line
B
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Suppose you have worked at a local sandwich shop for six months and now you plan to ask your manager for a raise. How can you convince your manager that you are worth more money than you are currently being paid?
A) by convincing him that you are a dedicated worker and ready to take on more responsibilities at the shop B) by explaining to him how difficult it is for you to save enough money to go to college C) by demonstrating to your manager the marginal revenue product your employment contributes to the sandwich shop D) by threatening to quit if he refuses to give you a raise
Environmentalists, worried about sulfur dioxide in the air, pressure the government to require bus manufacturers to modify exhaust systems in buses. In this situation,
a. benefits of the proposed requirements are more widespread than costs b. benefits and costs of the proposed requirements are equally widespread because producers of buses will pass cost increases on to bus companies who will increase fares c. pressure for government regulation is unnecessary because those who use buses will stop riding buses if they don't have cleaner emissions d. bus riders are more likely to lobby against the proposal than are bus producers e. bus riders are more likely to lobby against the proposal than are bus workers
Classical economists believed that
A. if saving exceeded investment, prices and interest rates would rise as business accumulated unwanted inventories. B. flexible prices and wages could not restore an economy to full employment if the interest rate were rigid. C. flexible interest rates, wages, and prices would assure full employment. D. voluntary unemployment reflected economic inefficiency.
If the economy is in long-run equilibrium,
A) prices will rise but wages will remain constant. B) neither prices nor wages will change. C) it is producing Natural Real GDP. D) prices will remain constant but wages may rise. E) b and c