Which of the following statements is FALSE?
A) A good with a vertical demand curve has a perfectly inelastic demand.
B) A good with a straight line, downward sloping demand curve has a demand whose elasticity is constant.
C) A good with a horizontal demand curve has a perfectly elastic demand.
D) All of the above statements are false.
B
You might also like to view...
The primary incentive for economic agents to formulate expectations rationally is to
A) increase earnings. B) increase prices. C) reduce prices. D) ensure that all expectations are realized.
Buying a cup of coffee with a dollar bill represents the use of money as a
Equilibrium GDP on the demand side occurs when total spending
A. equals total production, and inventories are zero. B. equals total production, and firms are unable to adjust inventories. C. exceeds total production, and inventories are rising. D. equals total production, and inventories remain at desired levels. E. is less than total production, and inventories are falling.
Which of the following is a significant difference in the behavior of the dictator/proposer between the dictator game and the ultimatum game?
A. The dictator/proposer tends to be more generous in the ultimatum game. B. The dictator/proposer tends to be more generous in the dictator game. C. There is no systematic difference in the generosity of the dictator/proposer between the two games. D. Dictators/proposers demonstrate more emotion when playing the dictator game.