In the case of perfectly inelastic demand, the demand curve is:
A. upward sloping.
B. downward sloping.
C. vertical.
D. horizontal.
Answer: C
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By saying that the equation of exchange is an accounting identity, we mean that
A) it is useful for accountants, but not for economists. B) it identifies the key national income accounts. C) it is always true. D) it explains the effect of questionable accounting practices on macroeconomic performance.
When economists study the behavior of buyers, they are studying:
A) supply. B) the role of government. C) demand. D) psychology.
In the last few decades there has been little progress in lowering the barriers to international trade
Indicate whether the statement is true or false
Refer to Figure 16-5. Suppose the firm represented in the diagram decides to practice perfect price discrimination. What is the total revenue collected by the firm?
A) $6,720 B) $7,680 C) $10,240 D) $13,440