The policy shown in Figure 9.7 is a
A) price floor of $50.
B) price support of $50.
C) price ceiling of $30.
D) quota of 2000.
E) quota of 4000.
D
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A specific investment is
A) one that can only be used in a transaction with a single firm. B) an investment that cannot be physically moved, such as an oil refinery. C) reduces the possibility of a holdup occurring. D) is more expensive than a general investment.
If the estimated elasticity of supply coefficient equals 0.85, then: a. the supply curve is vertical
b. the demand curve is horizontal. c. supply is unit elastic. d. supply is relatively inelastic.
If the slope of a person's utility function for different money prizes is linear, the person
A. is risk averse. B. is indifferent to risk. C. is a risk lover. D. We can't really say
The circular flow model:
a. Illustrates the interdependence of businesses and consumers b. Assumes that central planning is taking place c. Illustrates how natural resources are created d. Illustrates how money is created by the banking system