As price increases along a downsloping linear demand curve:
A. price elasticity of demand decreases.
B. price elasticity of demand increases.
C. price elasticity of demand does not change.
D. the behavior of price elasticity of demand cannot be determined.
Answer: B
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When sketched as a function of disposable income, the investment demand curve is:
a. always horizontal. b. always vertical. c. upward sloping. d. parabolic.
Explain the effect of self-selection on compensating wage differential.
What will be an ideal response?
In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market. B. decrease growth because they slow the growth of capital. C. increase growth because they stop exploitation by foreigners. D. decrease growth because they cause inflation.
A financial security that represents a promise to repay a fixed amount of funds is a
A) share of stock. B) coupon. C) dividend. D) bond.