In Figure 6-3(a), demand is
A. perfectly elastic.
B. perfectly inelastic.
C. unit elastic.
D. fixed at one particular quantity.
Answer: A
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The World Bank was created as a result of the Bretton Woods conference and was originally focused on the reconstruction of Europe after World War II
Indicate whether the statement is true or false
Suppose that the production of wheat requires two inputs, labor and fertilizer. The price of labor is $4.50 and the price of fertilizer is $3.00. A farmer is currently employing the inputs such that the marginal product of labor is 11 and the marginal product of fertilizer is 8. If the farmer is a cost-minimizer, he should:
A. Use more labor and less fertilizer B. Use more fertilizer and less labor C. Use more labor and more fertilizer D. Continue using the same amounts of each input
Apple has been producing the new iPhone throughout 2013, but doesn't plan to sell it until March 2014. How are these iPhones, which are sitting in a warehouse somewhere in the U.S., affecting GDP?
A. They are considered inventory until they sell, so investment will increase when they are sold in 2014. B. They are inventory and will decrease investment in 2013. C. They are not counted in GDP at all since they were not sold. D. They will increase GDP only in the year they are produced, 2013.
The higher the interest rate:
A. the greater the level of inflation. B. the smaller the present value of a future amount. C. the greater the present value of a future amount. D. None of the statements associated with this question are correct.