Refer to Figure 6-4. Which of the following statements about price elasticity of demand is true?
A) The inelastic portion of the demand curve corresponds to the segment above the midpoint.
B) At the midpoint of the demand curve, the elasticity coefficient is zero.
C) The elastic portion of a straight-line, downward-sloping demand curve corresponds to the segment above the midpoint.
D) The elasticity coefficient is constant along the demand curve.
C
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Which of the following is included in the computation of gross domestic product?
(a) Government transfer payments, such as unemployment benefits (b) Purchases of used goods, such as used cars (c) Child care tasks performed by househusbands (d) Total value of business inventories (e) Additions to business inventories
Which of the following is likely to have the narrowest bid-asked spread?
A) A Nasdaq stock B) A U.S. Treasury bill C) A corporate bond D) A Fannie Mae bond