The concept of marginality is important in economics because
A. marginal decisions indicate a lack of importance.
B. individuals make decisions at the margin.
C. large expenditures are the only factor influencing consumption.
D. individuals make decisions based on tastes only.
Answer: B
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Who among the following stressed the importance the voluntary exchange as a distinctly human trait?
A. Adam Smith B. Alfred Marshall C. John Keynes D. Karl Marx
Which of the following bonds are considered to be default-risk free?
A) municipal bonds B) investment-grade bonds C) U.S. Treasury bonds D) junk bonds
Studies have shown that drinking one glass of red wine per day may help prevent heart disease. Assume this is true, and a fungal disease destroys a large portion of the grape harvest of California vineyards. In the market for red wine, these two
developments would A) increase demand and increase supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of red wine. B) increase demand and decrease supply resulting in a decrease in both the equilibrium quantity and the equilibrium price of red wine. C) increase demand and decrease supply, resulting in an increase in the equilibrium price and an uncertain effect on the equilibrium quantity of red wine. D) increase demand and decrease supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of red wine.
The supply curve for land is vertical.
Answer the following statement true (T) or false (F)