A perfectly inelastic demand is one in which the:
A. response to a change in price is immediate.
B. demand curve is perfectly vertical.
C. measured elasticity is exactly -1.
D. demand curve is perfectly horizontal.
Answer: B
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Which of the following statements is false?
A. Greater distance reduces the likelihood of migration B. Greater stocks of human capital result in greater personal productivity and earnings C. The majority of international migrants move to countries relatively close to their home countries D. Implicit costs of migrating are not affected by distance
Hostess Brands is selling off its assets after liquidation. A potential buyer for the Twinkies brand has found that the total revenue will be $3 billion a year if the brand is managed well and $1 billion a year if the brand is managed poorly
There is .6 (or 60 percent) chance of managing the brand well and a .4 (or 40 percent) chance of managing the brand poorly. What is the expected total revenue? A) $0.4 billion B) $1.2 billion C) $1.8 billion D) $2.2 billion
When the price level falls
A) imports increase, and exports decrease, which causes a movement up along the aggregate demand curve. B) there is no impact on imports or exports, so there is no associated movement along the aggregate demand curve. C) imports decrease and exports increase, which cause a movement down along the aggregate demand curve. D) imports decrease and exports increase, which cause a movement up along the aggregate demand curve.
A move from S4 to S1 is a(n)
A. an increase in quantity supplied.
B. a decrease in quantity supplied.
C. an increase in supply.
D. a decrease in supply.