The absolute value of the price elasticity of demand for a downward-sloping linear demand curve
A. increases as price decreases.
B. is zero at all prices.
C. decreases as price decreases.
D. is unitary at all prices.
Answer: C
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The ________ is when society enforces property rights, contracts, and other rules based on an established set of laws.
A. rule of one B. rule of man C. rule of law D. rule of force
In the circular flow model of an economy, households
A) receive income from buyers of goods and services. B) receive income from the sale of factors in the goods markets. C) pay firms for the use of their factors. D) receive income from producers for the use of factors in the factor markets.
Refer to the figure at the right. Suppose point A is the original equilibrium. If there is an increase in the money supply, the new short-run equilibrium is giving by point
A. A.
B. B.
C. C.
D. D
All points inside the production possibilities curve indicate
A. the law of increasing relative cost. B. inefficiency in production. C. a lack of sufficient supply. D. the law of decreasing relative cost.