In the above figure, as output increases from 0 units to 10 units to 20 units to 30 units, the deadweight loss
A) falls.
B) falls at first, then rises.
C) rises.
D) rises at first, then falls.
B
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When the interest rate on newly issued bonds increases, the price of existing bonds:
A. decreases. B. may either increase or decrease. C. increases only if the coupon rate is below the new rate. D. increases.
Figure 6-2
In Figure 6-2, the price elasticity of demand (dropping all minus signs) is ____ between P = 4 and P = 6 than between P = 10 and P = 12 because between the lower set of prices the percentage change in price is ____.
A. smaller; smaller B. smaller; greater C. greater; smaller D. greater; greater
An organization that tries to encourage the flow of investment to poor countries is the
a. World Bank. b. Organization of Less Developed Countries. c. Alliance of Developing Countries. d. International Development Alliance.
The private sector includes privately owned businesses and for-profit divisions of various governments.
Answer the following statement true (T) or false (F)