If the demand is perfectly elastic, what would happen to the quantity demanded if there is a tiny increase in price?
a. quantity demanded will increase proportionately
b. quantity demanded will fall to zero
c. quantity demanded will register a disproportionately high increase
d. quantity demanded will decrease proportionately
b
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Which of the following statements is true of the Europeans in the period of colonization?
A) Europeans set up extractive economic institutions in all areas. B) Europeans set up relatively extractive economic institutions in areas that had greater population densities. C) Europeans set up relatively inclusive economic institutions in areas that had greater population densities. D) Europeans set up inclusive economic institutions in all areas.
One of the main sources of comparative advantage is internal economies
Indicate whether the statement is true or false
Which of the following is not a part of the Sarbanes-Oxley Act of 2002?
A) the establishment of a Public Company Accounting Oversight Board (PCAOB) to supervise accounting firms and thus insure that audits are independent and controlled for quality B) increased penalties for white-collar crime and obstruction of official investigations C) requires a CEO and CFO to certify that periodic financial statements and disclosure of the firm are accurate D) requires investment banks to make public their analysts' recommendations
Economists usually maintain that policy designed to increase aggregate demand cannot have any long-run real effects. What lies behind this argument?
What will be an ideal response?