On a linear demand curve, the lower the price
A) the less elastic is demand.
B) the more elastic is demand.
C) the elasticity equals -1.
D) the elasticity equals zero.
A
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All of the following are examples of constraints faced by decision makers, except one. Which is the exception?
a. income for a consumer b. natural resources for a firm c. time for a laborer d. consumer wants e. wealth for a consumer
Which of the following is a positive, as opposed to a normative, statement?
a. The US Department of Justice should allow a merger between AT&T and T-Mobile because it would have little effect on consumers. b. Antitrust laws should be used to prevent further concentration in the wireless telephone service market. c. The US Department of Justice sued AT&T to block its merger with T-Mobile. d. The wireless telephone service market is too highly concentrated.
When a physician knows more about alternative treatments than her patients do, we say that _______ exists.
a. adverse selection b. asymmetric information c. rational ignorance d. moral hazard e. perfect information
In the Keynesian view, the volatility of investment is primarily due to
a) technological advancements b) waves of productivity change c) “creative destruction”: new industries destroying old ones d) “animal spirits”: unpredictable episodes of optimism and pessimism e) erratic monetary policy by the central bank