An expected future increase in the price of bananas may
A) increase the demand for bananas now.
B) decrease the demand for bananas now.
C) increase the supply of bananas now.
D) make bananas an inferior good.
Answer: A
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Davis (1963) compares U.S. and British industrialization. What does he note in each country during industrialization?
(a) A rise in the number of giant banks in both countries (b) A rise in the number of small banks in the U.S. but a rise in the number of giant banks in Great Britain (c) A rise in the number of small banks in Great Britain but a rise in the number of giant banks in the U.S. (d) A decrease in capital accumulation because of a small number of free banks
The monopolist's input demand curve is the
A) marginal revenue curve. B) marginal revenue product curve. C) marginal physical product curve. D) marginal factor cost.
An individual's demand curve slopes down because
A. the value of the marginal utility falls as the price falls. B. marginal utility falls as price falls. C. of the law of diminishing marginal utility and the rule of equal marginal utilities per dollar. D. of the rule that the marginal utility of the last unit must equal the price.
Refer to the graph below. If more people in Europe decide to purchase U.S. cars, what effect will this have on the market for euros?
Assume that U.S. and European governments adopt a system of flexible exchange rates, and the figure below shows the market for euros.
A. Demand will decrease
B. Demand will increase
C. Supply will increase
D. Supply will decrease