When consumption of a good or service produces benefits or costs that are not reflected in the market price for the good, this is known as a(n):
A. externality.
B. common pool problem.
C. nonexcludable resource.
D. public good.
Answer: A
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Marginal utility theory predicts that as the price of coffee rises, the ________ a substitute for coffee ________ and the ________ coffee ________
A) supply of; increases; demand for; decreases B) supply of; decreases; supply of; increases C) demand for; increases; quantity demanded of; decreases D) demand for; decreases; demand for; increases
The above figure represents the market for teenage workers at fast-food restaurants in Kansas City
a) What is the equilibrium wage rate and employment? b) Describe the market at a wage rate of $6 per hour. c) Describe the market at a wage rate of $12 an hour. d) How would an increase in the number of young, married college graduates, who tend to eat at fast-food restaurants, affect the figure, the equilibrium wage rate, and employment?
Money serves all of the following functions except:
A) medium of exchange. B) store of value. C) unit of account. D) measure of power.
If monetary policy is fully anticipated by workers and firms, then it has no effect on the level of output; it affects only the price level
Indicate whether the statement is true or false