Which of the following is true?
A. At the same price, demand is more elastic on the steeper demand curve.
B. On a linear demand curve, elasticity is constant.
C. On a linear demand curve, the higher the price, the less elastic is demand.
D. None are true.
Answer: D
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A fall in the domestic interest rate leads to capital
a. outflows and exchange rate appreciation. b. outflows and exchange rate depreciation. c. inflows and exchange rate depreciation. d. inflows and exchange rate appreciation.
Which statement is true?
A. If you know a person's demand schedule, you can find his total utility, but not his marginal utility. B. If a good is free, you will consume more and more of it until your marginal utility is zero. C. If a good is free, you will consume more and more of it until your total utility is zero. D. If you know a person's demand schedule you can find her marginal utility, but not her total utility.
Refer to the information provided in Figure 26.8 below to answer the question(s) that follow.
Figure 26.8Refer to Figure 26.8. If the economy is at point A currently producing Y0 and the Z factors increase, the economy will move to Point ________ in the short run and to Point ________ in the long run.
A. B; C B. C; B C. D; E D. E; D
The stabilization policies of government are most likely to promote
A) high employment. B) price stability. C) reduced aggregate fluctuations. D) the interests of those who plan and execute them. E) the interests of the majority of voters.