If Juan purchases the same number of gallons of gasoline per week regardless of changes in gasoline price, Juan's demand for gasoline is:
A. perfectly elastic.
B. elastic.
C. perfectly inelastic.
D. inelastic.
Answer: C
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The reason that the government offers inventors exclusive rights to their product for a period of time is to
A) promote innovation. B) increase profits of certain companies. C) maximize consumer utility. D) reduce market concentration.
Refer to Figure 18.4. With a tariff or quota, what is the equilibrium quantity of gloves in Duckland?
A) 100 B) 80 C) 60 D) 40
The federal funds rate is the short-term interest rate that banks charge one another for loans.
Answer the following statement true (T) or false (F)
Which of the following led a strong attack against mainstream macroeconomists during the 1970s?
A) Friedman and Phelps B) Hicks and Hansen C) Modigliani and Friedman D) Lucas, Barro, and Sargent