For a linear demand curve
A. elasticity is constant along the curve.
B. elasticity is unity at every point on the curve.
C. demand is elastic at high prices.
D. demand is elastic at low prices.
Answer: C
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Leverage is thought to be:
A. a dangerous tool, especially for big companies who do not understand its risk. B. the most widely used of hedging risk in markets. C. the single reason for the Great depression. D. a relatively riskless strategy used by companies to grow quickly.
The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds. b. has a strong education system. c. has secure property rights. d. has a tax system that encourages savings.
If two bodegas in a market agree verbally that they will both sell Fritos at a higher price, and neither will undercut the other, this is called
A. collusion. B. perfect competition. C. implicit collusion. D. monopolistic competition.
Refer to the information provided in Figure 31.1 below to answer the question(s) that follow.
Figure 31.1Refer to Figure 31.1. Which of the following cannot cause a movement from Point A to Point C?
A. technological progress B. an expansionary monetary policy C. an increase in the productivity of workers D. an increase in capital stock