A perfectly elastic demand curve:
A) is parallel to the price axis.
B) is parallel to the quantity axis.
C) slopes upward.
D) slopes downward.
B
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According to the graph shown, if the market is in equilibrium, total surplus is area(s):
A. A.
B. A + B + C.
C. A + B + C + D + E.
D. D + E.
Reaching a Nash equilibrium means that:
A. there is no stable outcome to the game. B. the players will never reach a positive-positive outcome. C. a stable outcome has been reached. D. each player has achieved their highest payoff in the game.
Most monetarists favor:
A. frequent changes in the growth rate of the money supply to avoid inflation. B. placing the Federal Reserve under the Treasury. C. a steady, gradual shrinkage of the money supply. D. a constant increase in the money supply year after year equal to the potential annual growth rate in real GDP.
The government budget deficit or surplus is the difference between what a government ________ and what it ________ in a year.
A. earns from transfers; pays in transfers B. pays for imports; spends on exports C. spends; collects in taxes D. spends on programs; gives away in foreign aid