Use the above figure. When the budget line rotates from "c" to "b"
A. fewer units of J and more units of K will be purchased.
B. more units of J and more units of K will be purchased.
C. more units of J and fewer units of K will be purchased.
D. fewer units of J and fewer units of K will be purchased.
Answer: A
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The non-bank public chooses among various financial assets in deciding what kind of liquidity it wants to hold. It thereby increases or decreases
A) the narrowly-defined money stock (M1). B) the reserves of commercial banks. C) the reserves commercial banks are required to hold. D) all of the above, at least potentially. E) none of the above, since only the Fed can alter the money supply.
For which of the following is demand likely to be most price-elastic?
a. steak b. beef (including steak, ribs, hamburger, etc.) c. meat (including beef, pork, chicken, lamb, etc.) d. protein foods (including meat, cheese, beans, eggs, fish, etc.) e. none of the above (they will all have the same elasticity)
If a firm has a total cost of $150 and a variable cost of $100 for producing 5 units of output, then the fixed cost is:
a. $35. b. $50. c. $250. d. $100.
Even where imitation is possible, a firm may gain advantage from being the first to introduce an innovative product because of:
A. long-lasting brand-name recognition. B. a time lag between innovation and imitation by rivals. C. trade secrets that limit the ability of rivals to exactly imitate the product. D. all of these.