Behavioral economists use findings from psychology to explain complex consumer behavior that cannot always be explained by traditional economic models
a. True
b. False
Indicate whether the statement is true or false
True
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In the Baumol model, the total quantity sold will usually be larger than
A) if perfect competition prevailed. B) if total costs were minimized. C) if profit were maximized. D) if companies were interdependent.
A local store noticed that when it increased the price of milk from $2.50 to $3.50 per gallon, it sold the same amount of milk per week (165 gallons). Since everything else remained the same, we would say the
a. demand for milk is perfectly elastic b. demand for milk is elastic c. demand for milk is perfectly inelastic d. demand for milk is unitary elastic e. law of supply does not apply in this situation
A country has output of $900 billion, consumption of $600 billion, government expenditures of $150 billion and investment of $120 billion. What is its supply of loanable funds?
a. $30 billion b. $90 billion c. $120 billion d. $150 billion
Suppose there is an increase in the saving rate. Explain what effect this increase in the saving rate will have on the rate of growth of output per worker
What will be an ideal response?