If the supply of steel is perfectly elastic, then an increase in the demand for steel will
A. increase the price of steel but have no effect on quantity supplied.
B. increase the quantity of steel supplies but have no effect on the price.
C. have no effect on the price or the quantity supplied.
D. decrease total revenue taken in by steel producers.
B. increase the quantity of steel supplies but have no effect on the price.
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When the exchange rate increases from 4 francs per dollar to 6 francs per dollar, the dollar has ________.
A. become overvalued B. appreciated C. depreciated D. become undervalued
Which of the three basic economic questions deals with choosing the correct mix of output?
A.) What to produce. B.) How to produce. C.) For whom to produce. D.) How much to charge.
Higher home values can increase output in the economy if:
A. people sell their existing home and build a new one. B. people finance their child's college education by securing a second mortgage on their now higher-valued home. C. people take some of the equity out of their homes and spend it on a vacation. D. all of the answers given are correct.
The free-rider problem is the reason way private markets are unlikely to achieve the efficient level of production of
A) normal goods. B) excludable goods. C) public goods. D) private goods.