Use the following diagram of two product demand curves to answer the question. 
On the basis of this diagram, we can say that
A. over the range P1P2, price elasticity of demand is greater for D1 than for D2.
B. over range P1P2, price elasticity is the same for the two demand curves.
C. over the range P1P2, price elasticity of demand is greater for D2 than for D1.
D. not enough information is given to compare price elasticities.
Answer: A
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Optimization can be achieved using either of two techniques of cost-benefit analysis. Which of the following correctly identifies the techniques?
A) Optimization in levels and optimization in programs B) Optimization in levels and optimization in differences C) Optimization in programs and optimization in frames D) Optimization in differences and optimization in frames
Suppose there is a rise in the price level, but no change in the money wage rate. As a result, the quantity of labor demanded
A) increases. B) decreases. C) does not change because there is no change in the real wage rate. D) decreases only if the money wage rate also decreases.
Vertical integration can reduce transaction costs through all of the following ways except which one?
A) establishing a partnership between the two firms B) decreasing search costs C) decreasing the incentive for litigation D) increasing the required areas of managerial expertise
The gold standard fixes the:
a. future price of gold in terms of silver. b. price of gold in terms of international currencies. c. future price of silver in terms of gold. d. money supply in terms of paper currency. e. past exchange rate and the future exchange rate.