A demand curve is described as perfectly elastic if
a. any quantity can be sold at a given price.
b. the same quantity is sold regardless of price.
c. neither price nor quantity demanded ever change.
d. only price can change.
a
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The circular flow model represents the establishment of market value for:
a. goods and services. b. wages and salaries. c. profits and rents. d. all of these.
If consumption expenditures increased by $150 million, while GDP remained the same, which of the following could have occurred, all else equal?
a. Exports increased by $150 million b. Imports decreased by $150 million c. Net exports increased by $150 million d. Net exports decreased by $150 million e. Private investment increased by $150 million
If TruLite's factory workers receive an hourly wage, described by the equation; Compensation = $5.00 + .10Q, where Q is the number of light switches installed per hour, then:
A. the employee can remain completely risk-averse. B. there are no compensating differentials. C. output becomes a subjective measure of performance. D. the employee must accept risk of production variability.
In the late 1990s, aggregate demand was growing rapidly, but productivity grew even more rapidly. What happened to prices and output?
A. output went up a lot, prices went up some B. prices went up a lot, output went up some C. output went down, prices went up some D. both prices and output went down E. both prices and output remain unchanged