The speculative demand for money
a. varies inversely with national income
b. varies directly with national income
c. involves holding money for unexpected problems
d. varies directly with the transactions demand for money
e. varies inversely with the interest rate
E
You might also like to view...
When marginal product is less than average product,
a. average product falls. b. average product is zero. c. average product increases. d. average product is unaffected.
An example of a randomized controlled experiment is when
A) households receive a tax rebate in one year but not the other. B) one U.S. state increases minimum wages and an adjacent state does not, and employment differences are observed. C) random variables are controlled for by holding constant other factors. D) some 5th graders in a specific elementary school are allowed to use computers at school while others are not, and their end-of-year performance is compared holding constant other factors.
Which of the following is likely to reduce the impact of a monopsony?
a. Absence of competing firms b. Higher search costs c. An increased ability of workers to relocate elsewhere d. Higher movement and information costs
Answer the following statements true (T) or false (F)
1. If the consumer is willing to pay a price higher than the actual price of a product, then the consumer will not buy the product because the consumer surplus will be negative. 2. Consumer surplus is the reason why sometimes a shopper regrets having bought a particular item. 3. Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade is, respectively, $1.50, $1.20, $1.00, and $0.90. If the actual price of lemonade is $1.00 per glass, then consumer surplus in this market will be $0.70. 4. When the marginal benefits exceed the marginal costs of producing a product, then allocative efficiency is not achieved in the market.