On a price/quantity graph, a straight horizontal demand curve
a. has zero price elasticity.
b. is perfectly elastic.
c. is perfectly inelastic.
d. is perfectly unit elastic.
b. is perfectly elastic.
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The efficient markets hypothesis suggests that investors
A) should purchase no-load mutual funds which have low management fees. B) can use the advice of technical analysts to outperform the market. C) let too many unexploited profit opportunities go by if they adopt a "buy and hold" strategy. D) act on all "hot tips" they hear.
Given a real interest rate, a decrease in taxes on saving ________ the after-tax real interest rate and ________ the incentive to save
A) increases; increases B) increases; reduces C) decreases; increases D) decreases; reduces
A change in consumers’ tastes leads to an increase in crew cuts being requested at salons. This example shows a ______.
a. change in quantity demanded b. shift in the demand curve c. change in surplus d. shift in substitutes
An economy is said to have a comparative advantage in producing a particular good if it:
A) can produce more of all goods than another economy. B) can produce less of all goods than another economy. C) has the highest cost for producing that good. D) has the lowest cost for producing that good.