Refer to the figure below. At P = 4, how does the price elasticity of demand for D1 compare to that for D2? 
A. The price elasticity of demand for both D1 and D2 will be greater than one.
B. It will be equal for D1 and D2.
C. It will be greater for D1 than for D2.
D. It will be lower for D1 than D2.
Answer: D
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The opportunity cost of holding money
a. the dollar cost necessary to change other assets into money
b. the time cost of accessing funds
c. the value of the goods and services a person is able to obtain with the money
d. the interest a person could have earned by holding other forms of wealth instead
e. zero, because opportunity costs only apply to real assets, goods and services
People on a fixed income are adversely affected by inflation.
a. true b. false
Which of the following statements is correct?
A. Slope is the ratio of the vertical change (the rise or fall) to the horizontal change (the run). B. A direct relationship is one in which two variables change in the opposite direction. C. An inverse relationship is one in which two variables change in same directions. D. An independent relationship is one in which two variables are upward sloping.
Refer to the information provided in Figure 11.1 below to answer the question(s) that follow. 
Figure 11.1 Refer to Figure 11.1. If the market rate of interest is < 5%, this firm's investment will total
A. $0. B. < $5,000. C. $7,000. D. > $15,000.