Perfectly elastic demand is represented by a demand curve that
A) is vertical.
B) is horizontal.
C) has a 45° slope.
D) is a rectangular hyperbola.
B
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Part of the increase in currency holdings in the 1960s and 1970s can be attributed to
A) increases in income tax rates. B) the switch from progressive to proportional income taxes. C) the adoption of regressive taxes. D) bracket creep due to inflation and progressive income taxes.
The phase in the business cycle in which real GDP declines is called a:
a. trendline. b. peak. c. recession. d. recovery. e. trough.
A rightward shift in the money supply curve is likely to produce a rightward shift in the aggregate demand curve
a. True b. False Indicate whether the statement is true or false
Suppose a company increases production from a point where marginal cost equals average total cost to a point where marginal revenue and marginal cost are equal. Is it a good idea for the company to do this? Why? a. No; average total costs have increased which means the company is not minimizing losses
b. Yes; because average variable costs are always less than average total costs. c. No; because the marginal cost of producing the last unit is the same as the marginal revenue. d. Yes; even though the previous level of output had minimized the average total cost, there was still profit to be earned by producing additional units. e. No; the previous level of output was the most efficient because it had the lowest average total cost.