______ demand is when the quantity demanded changes proportionately to price changes.
a. Perfectly elastic
b. Unit elastic
c. Perfectly inelastic
d. Unit inelastic
b. Unit elastic
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Households receive their income in the circular flow diagram by
A) obtaining dividends and interest payments. B) selling the use of their property. C) selling resources they own to business firms. D) selling the goods they produce at home.
Suppose the U.S. Congress is successful in enacting tariffs large enough to eliminate the current account deficit. What would happen to the level of domestic investment?
A) It would not change. B) It would fall to a level equal to national saving. C) It would rise and exceed national saving. D) It would rise to a level equal to net foreign investment.
A factory produces 1,000 radios a year, AVC = $10 and TFC = $5,000. The factory’s TC
A. equals $15. B. equals $5,005. C. equals $15,000. D. cannot be determined from the information given.
A Certificate of Deposit would be counted in which measure of money?
A. M1 B. M2 C. Hard money D. It would be counted in both M1 and M2