If a small change in price will lead to an infinite change in the quantity demanded, then the demand curve is:
a. Perfectly elastic
b. Perfectly inelastic.
c. Downward sloping.
d. non-linear
a
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In the foreign exchange market, a broker reveals the names of the banks making bids or offers to the trading banks before the trade has been agreed upon
Indicate whether the statement is true or false
According to the theory of rational expectations,
a. workers' experience tells them that government action to lower unemployment will not affect inflation. b. consumers and investors generally behave so that rationally formed government attempts to stimulate aggregate demand have their desired effects. c. policy goals can be achieved easily in the short run. d. workers' wage demands include anticipated inflation. e. expansionary monetary policy will lead to permanent interest rate declines.
The total burden of a tax is the
A. absolute number of dollars an individual pays. B. percentage of income a person pays. C. number of dollars a person must be given after taxation to make him as well off as he was before taxation. D. revenue lost to loopholes.
Whenever there is a divergence between social costs and market costs, the result is:
A.) Market power. B.) Market failure. C.) Maximized social welfare. D.) A higher minimum wage.