Refer to the graph shown. Which of the following curves demonstrates a perfectly elastic demand curve?
A. A
B. B
C. C
D. None of the curves
Answer: A
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An economy has two workers, Jen and Rich. Everyday they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Jen to produce one radio?
A. 1/5 TV B. 10 TVs C. 5 TVs D. 1/10 TV
Matthew purchases a candy bar with his allowance. This purchase represents using money as
A) a medium of exchange. B) a store of value. C) an unit of account. D) none of the above.
The value of Austria's exports minus the value of Austria's imports is called
a. Austria's net exports. b. Austria's net imports. c. Austria's foreign portfolio investment d. Austria's foreign direct investment.
If a supplier faces a perfectly horizontal demand curve and sets his price slightly higher than the demand curve itself, he can expect:
A. no change in his total revenues. B. everyone to begin buying his product. C. a complete loss of revenues. D. a new demand curve.