Demand for Shell gasoline will increase if the price of:
A. Shell gasoline decreases.
B. Motor vehicles increases.
C. BP gasoline increases.
D. BP gasoline decreases.
Answer: C
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When the Fed wants US interest rates to increase, it will usually sell US t-bonds to banks
a. true b. false
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 ? 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2. How much output should be produced in plant 1 in order to maximize profits?
A. 6 B. 12 C. 3 D. 9
Answer the following statements true (T) or false (F)
1. Economics is the social science concerned with the best use of scarce resources to achieve maximum satisfaction of economic wants. 2. Marginal analysis is the valuation of insignificant or small benefits from doing things. 3. Rational behavior implies that different people faced with similar choices will make the same decisions. 4. Economic analysis is primarily concerned with marginal changes from the status quo, as a result of a certain action or decision.
If all conditions for a perfectly competitive market are met,
A) firms face sunk cost when entering the market. B) firms' demand curves are horizontal. C) the market demand curve is horizontal. D) the firms' demand curves are downward-sloping.