Capital is to investment as
A. a flow is to a rate.
B. a flow is to a stock.
C. a stock is to a flow.
D. a stock is to a bond.
Answer: C
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In economic analysis, people's resources are
A) limited and their wants are unlimited. B) unlimited and their wants are also unlimited. C) limited and their wants are also limited. D) unlimited and their wants are limited.
Price elasticity remains constant along a straight-line demand curve
a. True b. False Indicate whether the statement is true or false
A government currently uses price controls to hold down the price of zinc, an exhaustible resource. If price controls are removed,
a. production of zinc will probably fall. b. zinc mines with high marginal cost of production will probably stop producing. c. consumers of zinc will probably want substitutes for zinc. d. income will probably be redistributed from zinc producers to zinc consumers.
A surplus in a labor market exerts an upward pressure on the equilibrium wage rate
a. True b. False Indicate whether the statement is true or false