As the price level rises, ceteris paribus, people holding some of their wealth in monetary form become
A) less wealthy and they buy less.
B) more wealthy and they buy more.
C) less wealthy and they buy more.
D) more wealthy and they buy less.
A
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In the case of Intimate Bookshop v. Barnes & Noble, Intimate alleged that Barnes & Noble
a. was bundling products in order to reduce competition. b. used technological advances to sell at lower prices. c. was buying books at discriminatory prices. d. had merged with other competitors in an effort to gain monopoly power.
Kate's money income is $250, the price of X is $3, and the price of Y is $2. Given these prices and income, Kate buys 60 units of X and 35 units of Y. Call this combination of X and Y bundle J. At bundle J, Kate's MRS is 3. At bundle J, if Kate increases consumption of Y by 1 unit, how many units of X must she give up in order to satisfy her budget constraint?
A. 1 B. 3 C. 2/3 D. 3/2
When the total external and internal costs of a transaction are taken into consideration, this is known as
A) public costs. B) average total costs. C) social costs. D) marginal costs.
Which of the following is NOT a private cost?
A. the coffee pot that Jan dropped and broke this morning B. the pollution caused by a firm dumping its wastes into the river C. the health insurance costs a firm must pay for its employees D. the amount that a firm must pay for raw materials to make its product