A perfectly elastic demand curve is represented by a vertical line.

A perfectly elastic demand curve is represented by a vertical line.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

Campbell recently began running his brother's lumber mill. Last month he took in 10,000 in sales revenue and paid 6,800 in out-of-pocket costs. He made an economic profit last month if his implicit costs were:
 a. 2000.
  b. 3200.
  c. 4800.
  d. 6600.

QUESTION 3

The concept of comparable worth:
 a. is that pay ought to be determined by job characteristics rather than by supply and demand.
  b. is that pay ought to be determined by supply and demand rather than by job characteristics.
  c. has made hiring practices much simpler for employers.
  d. asserts that market-determined wages are the only appropriate way in which to allocate pay.
  e. is easy to implement once a new worker has been hired.

QUESTION 4

Since demand curves are mostly downward sloping, economists tend to ignore the negative sign when calculating the price elasticity of demand.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

Beth recently began running her husband's lumber mill. Last month she took in 5,000 in sales revenue and paid 3,400 in out-of-pocket costs. She made an economic profit last month if her implicit costs were:
 a. 1000.
  b. 1600.
  c. 2400.
  d. 3300.

QUESTION 6

The Civil Rights Act of 1964 in the United States led to _____.
 a. the introduction of the concept of discrimination.
  b. complete elimination of discrimination from the labor force.
  c. the creation of equal opportunities for men and women.
  d. the creation of equal opportunities for the members of different races.
  e. the establishment of a much clearer definition of discrimination.

QUESTION 7

If the price elasticity of demand is between -1 and - , then demand is inelastic.
 a. True
  b. False
  Indicate whether the statement is true or false