If demand is perfectly elastic, the absolute value of the price elasticity coefficient is
A) infinity.
B) zero.
C) one.
D) equal to the absolute value of the slope of the demand curve.
Answer: A
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Use the following graph of the demand for pasta to answer the question below.
Refer to the three demand curves for pasta and assume that pasta is an inferior good. Which of the following would shift the demand for pasta from D1 to D3?
A. an increase in the price of pasta B. a decrease in consumer incomes C. an increase in consumer incomes D. a decrease in the price of pasta
The type of tax receipts that has shown the slowest growth since World War II has been
A) personal taxes. B) contributions for social insurance. C) taxes on production and imports. D) corporate taxes.
Belgium, according to economists, is in a recession when its
a. real GDP declines for at least three months b. real GDP declines for at least nine months c. nominal GDP declines for at least nine months d. real GDP declines for at least six months e. nominal GDP declines for at least six months
Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage
a. True b. False Indicate whether the statement is true or false