Along a linear demand curve, price elasticity of demand is:
a. constant
b. more elastic to the northwest than to the southeast.
c. less elastic to the northwest than to the southeast.
d. always equal to one.
b
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OPEC is an example of a:
A. cartel. B. duopoly. C. monopoly. D. monopsony.
Based on the figure below. Starting from long-run equilibrium at point C, an increase in government spending that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ creating _____gap. 
A. D; an expansionary B. B; no output C. B; expansionary D. A; a recessionary
Other things the same, when the interest rate rises,
a. people would want to lend more, making the supply of loanable funds increase. b. people would want to lend less, making the supply of loanable funds decrease. c. people would want to lend more, making the quantity of loanable funds supplied increase. d. people would want to lend less, making the quantity of loanable funds supplied decrease.
Given that Tamar is a risk-averse person, she might accept a bet with a 50 percent chance of losing $100 today if she had a 50 percent
a. chance of winning $120 in two years and the interest rate was 11%. b. chance of winning $114 in two years and the interest rate was 7%. c. chance of winning $110 in two years and the interest rate was 3%. d. None of the above are correct; a risk averse person would not accept any of the above bets.