A perfectly inelastic demand curve is
A) a horizontal straight line.
B) a vertical straight line.
C) a downward sloping straight line that intersects the horizontal axis at the origin.
D) an upward sloping straight line that crosses the vertical axis.
B
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A rational consumer will always shift a dollar from a good for which the marginal-utility- to-price ratio is lower to one for which the marginal-utility-to-price ratio is higher
Indicate whether the statement is true or false
The supply of loanable funds reflects the willingness of
a. businesses to borrow loanable funds for new capital at various interest rates b. consumers to spend loanable funds for items, such as new cars, at various interest rates c. savers to provide loanable funds to the loanable funds market at various interest rates d. firms to provide the funds, which is why production occurs in the first place e. people to invest in business enterprise, if the price is right (meaning if the interest rate is right)
An example of a public good would be
A. a plane ride from Miami to Dallas. B. flood control protection from a government authority. C. a commuter's trip to work by car from Berkeley to Chicago. D. a bus ride from Phoenix to Los Angeles.
Which of the following is NOT an economic function of government?
A. ensuring economic stability B. providing government-inhibited goods C. promoting competition D. providing a legal system