If the Demand Curve Is Horizontal a Rightward Shift of the Supply

question 58

Multiple Choice

If the demand curve is horizontal a rightward shift of the supply curve will lead to

• A)an increase in quantity supplied.
• B)an increase in price.
• C)a decrease in quantity demanded.
• D)a decrease in price.

Be aware of the legal entity concept and its application to different forms of business organization.

Appreciate the importance of the separation between business and personal financial activities.

Understand the concept of net income and its calculation.

Recognize the purpose and components of the statement of cash flows.

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Definitions:

Culture Fair Intelligence Test

An intelligence test designed to minimize biases arising from cultural or linguistic differences among test-takers.

Fluid Ability

The aspect of intelligence that involves the ability to deal with new and unusual problems without relying on previous knowledge.

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A type of intelligence that involves the ability to use learned knowledge and experience.

Worldview

The totality of psychological, thought, and emotional components of behaviors and decision making.