The law of demand is graphically demonstrated by a(n):
a. perfectly vertical demand curve.
b. perfectly horizontal demand curve.
c. downward-sloping demand curve.
d. upward-sloping demand curve.
e. curved demand line.
c
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When the Fed signals how long it expects interest rates to remain at a low level, it is said to be engaging in
A) credit easing. B) forward guidance. C) quantitative easing. D) a maturity extension program.
In the case of negative externalities, _____
a. the market equilibrium output is greater than the socially optimal output b. the market equilibrium output is lesser than the socially optimal output c. the social cost curve lies below the private cost curve d. the market is allocatively efficient at market equilibrium
Which of the following is an example of a normative, as opposed to positive, statement?
a. Universal health care would be good for U.S. citizens. b. An increase in the cigarette tax would cause a decrease in the number of smokers. c. A decrease in the minimum wage would decrease unemployment. d. A law requiring the federal government to balance its budget would increase economic growth.
The nature of a firm's cost (fixed or variable) depends on the
a. firm's revenues. b. time horizon under consideration. c. price the firm charges for output. d. explicit but not implicit costs.