The elasticity of a demand curve at any point can be ascertained by its steepness
a. True
b. False
Indicate whether the statement is true or false
False
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Use the following graph to answer the next question.
Which line in the graph above would best illustrate the asset demand for money curve?
A. Line 1 B. Line 2 C. Line 3 D. Line 4
A reason why discretionary fiscal policy might move the economy away from potential GDP instead of toward potential GDP is that
A) economic forecasts consistently underestimate the impact of fiscal policy. B) it is difficult to know whether real GDP is above or below potential GDP. C) during a recession, politicians prefer increases in government spending over decreasing taxes. D) government programs automatically move real GDP away from potential GDP. E) government programs are always expansionary.
When buying a car from a dealer, to get a better bargaining position
a. Always carry your check book to show willingness to buy b. Carry only blank checks to ease the transaction c. Carry a cashier check that cannot be modified d. All of the above
In profit centers
a. Managers are difficult to evaluate because there is no simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically have ample incentives to run their division efficiently