The price elasticity of demand for a horizontal demand curve is:
a. 0.
b. -1.
c. 1.
d. - infinity.
d
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An increase in the price level ________ real wealth, which causes consumption to ________
A) lowers; decrease B) raises; decrease C) lowers; increase D) raises; increase
Collective decision making costs _____
a. decrease as we get closer to unanimity b. increase as more people have to agree c. are an impediment to individual action d. are the reason why simple majority rule is always optimal
If a German firm produces cars in the United States, that production should count towards Question 5 options:
A. German GDP. B. U.S. GDP. C. U.S. GNP. D. both U.S. GNP and German GDP.
It has been suggested that in order to protect U.S. jobs we need to restrict foreign competition by restricting imports
A) This is a sound economic statement since the U.S. will still export protecting U.S. jobs. B) This is a sound economic statement since U.S. firms will have to increase output to make up for the lack of imports leading to increase employment in the U.S. C) This is not a sound economic statement since employment in the U.S. does not depend on imports and exports. D) This is not a sound economic statement since import restrictions lead to a reduction in employment in the export industries of the U.S.