A linear, downward-sloping demand curve has a constant elasticity but a changing slope

Profits

A) are a cost of doing business because they are payments to others. B) are not a cost of doing business because they are owed to resource owners. C) are not a cost of doing business because they are often zero or negative. D) are a cost of doing business because entrepreneurs would not incur the risk of starting a business if they didn't expect to earn profits.

Personal income taxes and transfer payments

A) acts as automatic stabilizers. B) magnify fluctuations in GDP. C) are discretionary fiscal policy tools only. D) are influenced by monetary policy.