If, regardless of price, the quantity demanded is a constant amount, then the demand curve is:
A. horizontal.
B. vertical.
C. upward sloping.
D. downward sloping.
Answer: B
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A graph that shows how the amount of advertising expenditure differs among various industries can be shown
A) by a trend-section graph. B) by a scatter diagram. C) by a time-series graph. D) as a trend. E) by a cross-section graph.
In the presence of external economies of scale, trade
A) may or may not improve welfare in both countries. B) will unambiguously improves welfare in both countries. C) will unambiguously worsens welfare in both countries. D) will unambiguously worsen welfare in the exporting country and improve welfare in the importing country. E) will unambiguously improve welfare in the exporting country and worsen welfare in the importing country.
An increase in the effective tax rate on capital would cause the IS curve to
A) shift up and to the right. B) shift down and to the left. C) remain unchanged. D) remain unchanged if taxes are fully deductible from income; otherwise, shift up and to the right.
Suppose government purchases increase by $100 million in an economy, which leads to total output increasing by $500 million. The size of the multiplier is _____
a. $400 b. 5 c. $500 d. 0.5 e. 50