If demand is perfectly elastic, then:

If demand is perfectly elastic, then
 A) demand and price are inversely related.
  B) quantity demanded and price are inversely related.
  C) the demand curve is a vertical line.
  D) the demand curve is a horizontal line.

QUESTION 2

Under a progressive tax system:
 a. only the rich are taxed.
 b. higher marginal taxes are imposed on higher incomes.
  c. lower taxes are imposed on everyone.
 d. everyone pays the same percent of their income for tax.

QUESTION 3

A _____ is a combination of an annuity that consists of coupon payments and a terminal payment of the par value.
 a. share
  b. bond
  c. perpetuity
  d. debenture

QUESTION 4

If price elasticity is 3.25, then demand is
 A) inelastic.
  B) elastic.
  C) unitary.
  D) negative.

QUESTION 5

Other things equal, who of the following would not tend to earn more?
 a. Someone in a riskier or more unpleasant job, rather than a safer or more pleasant job.
  b. Someone in a job that requires a graduate degree rather than an undergraduate degree.
  c. Someone who works longer hours, rather than shorter hours.
 d. All of the above would tend to earn more.

QUESTION 6

Which of the following alternatives signify the difference between the present value of a 150 perpetuity and 2-year 150 annuity, both discounted at 15 percent per annum.
 a. The perpetuity would require an initial investment worth 100 while the annuity would require an initial investment worth 244.07.
  b. The perpetuity would require an initial investment worth 1,500 while the annuity would require an initial investment worth 115.07.
  c. The perpetuity would require an initial investment worth 1,000 while the annuity would require an initial investment worth 244.07.
  d. The perpetuity would require an initial investment worth 100 while the annuity would require an initial investment worth 115.07.