A perfectly elastic demand curve
A) shows that a slight change in income will lead to a large reduction in price.
B) is a vertical line drawn across from the quantity axis.
C) shows that a slight increase in price will reduce quantity demanded to zero.
D) has a slope of -1.
Answer: C
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The Economic Development Minister of a country has a list of things she thinks may explain her country's low growth of real GDP per person relative to other countries. She asks you to pick the one you think most likely explains her country's low growth. Which of the following contributes to low growth?
a. poorly enforced property rights b. outward-oriented trade policies c. policies that permit foreign investment d. All of the above are correct.
An increase in interest rates will immediately shift
A. aggregate supply to the right. B. aggregate demand to the left. C. aggregate demand to the right. D. aggregate supply to the left.
The legislation that prohibited "every contract, combination, ...or conspiracy" that limits competition is the:
A. Federal Trade Commission Act. B. Clayton Act. C. Sherman Act. D. Celler-Kefauver Act.
A person has a comparative advantage in an activity whenever she
A. can perform the activity at a lower opportunity cost than another person can. B. can do the activity in less time than anyone else. C. has an absolute advantage in the activity. D. can do everything better than anyone else.