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.
Answer: A
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Which of the following statements is true of a flexible exchange rate system?
A) Market forces tend to undervalue a currency over time. B) Market forces tend to overvalue a currency over time. C) Market forces do not affect exchange rates between different currencies. D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.
Most economists believe that raising the minimum wage decreases the employment opportunities for low-skilled workers
Indicate whether the statement is true or false
The Great Depression of the 1930s
A. confirmed the value of a “hands off” policy for governments. B. was exacerbated by an expansionary monetary policy. C. was a worldwide event. D. continued throughout the 1940s without any interruption.
Structural unemployment
A. is due to seasonal changes. B. arises from recessions. C. is due to changes in the structure of the economy. D. arises from the time it takes employers to find appropriate employees.