A horizontal demand curve is
A. has elasticity of zero.
B. unit elastic.
C. perfectly elastic.
D. perfectly inelastic.
Answer: C
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Which of the following could be the price elasticity of demand for a good for which an increase in price would increase revenue?
a. 0.3 b. 1 c. 1.8 d. None of the above could be correct.
The proposition that if property rights are well defined and there are no transaction costs, an efficient allocation of resources will result even if externalities exist, is known as __________________
a. transaction costs b. Hartwick's rule c. the Coase Theorem d. Coase's Law e. the Hayes Theorem
Most financial markets in the United States operate under a system:
A. where it depends on which state where the financial market is located since some states do not have any regulations. B. without any formal rules or regulation. C. with many rules and regulation to ensure a fair market. D. that is totally controlled by the federal government.
During normal times
A. fiscal policy is not effective because of the recognition time lag. B. fiscal policy is very effective because it the effects of fiscal policy will swamp automatic stabilizers and time lags can be. C. fiscal policy can immediately correct problems in the economy. D. automatic stabizers is not effective in affecting real GDP.