If the demand curve for a product is vertical, then
A) the demand for the product is elastic.
B) the demand for the product is perfectly elastic.
C) only a certain amount of the product will be consumed regardless of price.
D) the price elasticity of the product approaches zero.
Answer: D
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If currency speculators decide that the value of the dollar should rise in the future relative to the yen, this will increase the demand for dollars and decrease the supply of dollars
Indicate whether the statement is true or false
The price of coffee is always equal to one-half the price of tea. When we plot the budget line for coffee and tea, coffee is plotted on the horizontal axis. What is the slope of this budget line?
A) -1/2 B) 1/2 C) -2 D) 2
One flaw of pure capitalism is that a person who owns no resources could starve
a. True b. False
A GDP deflator of 112 means:
A. the overall price level is 12 percent higher than in the base year. B. the overall output increased by 12 percent since the base year. C. every price in the economy has gone up by 12 percent. D. the production of each good in the economy has increased by 12 percent.