If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's ________ curve will shift down and the industry ________ curve will shift to the right.
A. marginal benefit; supply
B. marginal benefit; demand
C. marginal cost; demand
D. marginal cost; supply
Answer: D
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Which of the following is TRUE regarding markets? I) Economists define a market as a geographic location where trade occurs. II) A market enables buyers and sellers to get information about each other and to buy and sell from each other
III) Markets coordinate decisions through prices. A) I only B) I and III C) II and III D) I, II and III
When Sam Snerd decides to reduce his savings account by $20,000 to purchase a new car with cash, he is using money that is included in our definition of M1, M2 and M3
Indicate whether the statement is true or false
Suppose you camped out in front of an electronics store to be one of the 200 lucky people able to purchase the latest gaming system. You bought the system for $350. Two weeks later you see that the same system can be sold on e-Bay for $600, so you sell your system. Your market role was as a:
A. consumer at the electronics store; the e-Bay transaction did not occur in a market. B. consumer at the electronics store and a seller on e-Bay. C. seller in both markets. D. consumer in both markets.
Which of the following is an example of someone with inflationary expectations taking a step designed to insulate themselves from the higher expected rates of inflation
What will be an ideal response?