Rationally, search should continue until:
A. the marginal cost of search is zero.
B. all search options have been explored.
C. the marginal benefit of search equals the marginal cost of search.
D. the marginal benefit of search is zero.
Answer: C
You might also like to view...
What is the primary difference between the substitution and the income effect of a price change?
A) The substitution effect holds income constant and the income effect holds utility constant. B) The substitution effect is always positive and the income effect is always negative. C) The substitution effect holds utility constant and the income effect holds prices constant. D) The substitution effect is always negative and the income effect is always positive.
Crowding out will lead to a decrease in supply of loanable funds, a decrease in real interest rates, and subsequently a decrease in spending by households and firms
a. True b. False Indicate whether the statement is true or false
Suppose George withdraws $60,000 from his bank. If the reserve ratio is 25 percent, then this transaction will lead to a decrease of ________ in checking account balances.
A. $15,000 B. $45,000 C. $90,000 D. $180,000
Suppose consumer confidence improves and as a result, consumer spending increases by $50 billion dollars. Assume households spend $0.80 of each extra dollar of income and save the remaining $0.20
Other things equal, calculate by how much spending will increase during: a. the first round through the circular flow. b. the second round through the circular flow. c. the third round through the circular flow. d. the fourth round through the circular flow.