If demand is perfectly elastic, the price elasticity of demand is equal to:
A. 1.
B. 0.
C. infinity.
D. a positive number between 0 and infinity.
Answer: C
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An increase in the rate of interest, other things being equal, will cause a(n):
a. downward shift in the investment demand curve. b. movement downward along the investment demand curve. c. movement upward along the investment demand curve. d. upward shift in the investment demand curve.
Economics is best defined as the
A) study of how people make choices to satisfy their wants. B) study of individual self-interests. C) study of why people do not react to incentives. D) process by which goods are sold in free markets.
Arguments in support of protectionism (and against free trade) include all of the following EXCEPT
A) new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts. B) jobs at home should be protected from cheap foreign labor. C) protectionism increase total domestic consumption possibilities. D) national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies.
Refer to the information provided in Figure 8.4 below to answer the question(s) that follow. 
Figure 8.4 Refer to Figure 8.4. Micro Oven's average fixed costs of producing six units of output are
A. $41.66. B. $50. C. $100. D. indeterminate from this information.