Mark loves ice cream. At any point in time, he will buy an additional ice cream cone if
A) the marginal benefit from it exceeds the price.
B) the marginal benefit from it is zero.
C) his willingness to pay is less than the price.
D) there is no deadweight loss produced by his purchase of a cone.
E) None of the above answers is correct.
A
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Describe what has happened to state obesity rates in the United States since 1994
What will be an ideal response?
Assume the demand and supply functions for good X can be written as Qd = 1000 - 40Px Qs = -200 + 20Px In this example, equilibrium price is $20 and the equilibrium quantity is 200
Indicate whether the statement is true or false
There are two kinds of changes in net taxes: First, net taxes can change if the government changes its tax or transfer policies. Second, net taxes change automatically as income rises and falls, without any change in policy. The _________ kind of change sets off the multiplier process, while the _________ kind of change occurs during the multiplier process
a. first; first. b. first; second. c. second; first. d. second; second. e. None of the above.
Monetarists have trouble accepting the Keynesian view on money and the effect of money on the economy. Monetarists, unlike Keynesians, believe that
a. there is a strong cause-and-effect relationship between the money supply and real GDP, increase one and the other increases as well b. there is a strong cause-and-effect relationship between changing expectations and the velocity of money c. the economy is typically at full employment so that any increase in the money supply will only result in inflation d. the cause-and-effect relationship between the money supply and money demand is mutually interdependent, that is, any increase in supply increases demand and anyincrease in demand increases supply so that the economy is typically in equilibrium e. there is a strong cause-and-effect relationship between the interest rate and the price level that works as follows: increase the interest rate and real GDP increases whichdecreases the price level