If the demand curve for a product is horizontal, then
A) the demand for the good is perfectly inelastic.
B) consumers are not responsive to price changes.
C) its price elasticity of demand approaches infinity.
D) consumers may purchase all they want to at the established market price.
Answer: C
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During the 1980s, assets in the Social Security system fell so low they covered less than two months o f benefit payments
a. True b. False
The last time a recession hit the country of Valtonia, the price of real estate fell significantly. When Craig learns that this country's stock market has crashed, he immediately decides to sell his houses. This is an example of the theory of _____
a. absolute advantage b. rational expectations c. adaptive expectations d. sticky wages
Recall the Application about how worldwide trade has affected the U.S. auto industry to answer the following question(s). This Application illustrates:
A. that U.S. parts manufacturers are now facing increasing global pressures. B. the trade-offs inherent in a global economy. C. how U.S. domestic manufacturers of auto parts have been adversely affected in recent years. D. All of these.
Most of the unemployment that occurred during the Great Depression was
A) frictional unemployment. B) structural unemployment. C) cyclical unemployment. D) core unemployment.