The short-run supply curve of a competitive firm is the portion of:
A) its average cost curve that lies above its marginal cost curve.
B) its average cost curve that lies below its marginal cost curve.
C) its marginal cost curve that lies above its average variable cost curve.
D) its marginal cost curve that lies below its average cost curve.
C
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The immediate (two-day) exchange of one currency for another is a
A) forward transaction. B) spot transaction. C) money transaction. D) exchange transaction.
If a 1 percent change in income generates a greater than 1 percent change in quantity demanded for boat rentals, then the demand for boat rentals
a. is a good illustration of Engel's law b. reflects the demand for an inferior good c. has a price elasticity greater than one d. is income elastic e. is income inelastic
Which of the following statements is true, assuming leisure is a normal good?
A. If the income effect is sufficiently large, the labor supply curve will bend backwards. B. If the income effect is sufficiently small, the labor supply curve will bend backwards. C. If the income effect is sufficiently large, the labor supply curve will slope down. D. If the income effect is sufficiently large, the labor supply curve will shift to the left.
Refer to the table below. If the child buys either chocolates or hard candies one piece at a time, what will be his first two purchases?
A child is given $4 of pocket money to be spent on either hard candies or chocolates. Chocolates cost 40 cents and hard candies 80 cents each. The marginal utilities derived from each product are as shown in the following table:
A. A hard candy, followed by another hard candy
B. A hard candy, followed by a chocolate
C. A chocolate, followed by a hard candy
D. A chocolate, followed by another chocolate