Use the following general linear demand function below:Qd = a + bP + cM + dPRwhere Qd = quantity demanded, P = the price of the good, M = income, PR = the price of a good related in consumption.If c = 15 and d = 20, the good is
A. a normal good.
B. an inferior good.
C. a substitute for good R.
D. a complement with good R.
E. both a and c
Answer: E
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Recently, the government made adjustments to how GDP is calculated that included placing software purchases into the category of
A) intermediate goods because software is not a final good. B) inventory and now software purchases are not directly counted as part of GDP. C) investment and now directly counts software purchases as part of GDP. D) net exports of goods and services because most software is written abroad. E) net operating surplus.
Mary receives a consumer surplus of $500 from purchasing a purse. If the market price of the purse is $1,500, the price Mary is willing to pay is $1,600
a. True b. False Indicate whether the statement is true or false
Assume the Keynesian transmission mechanism is operational and the economy is currently operating in the horizontal portion of the AS curve. If the money supply decreases and the demand for money curve is downward sloping and investment is interest-____________, then Real GDP will ___________________
A) sensitive; fall B) insensitive; fall C) sensitive; rise D) insensitive; rise E) sensitive; remain unchanged
Michael loves donuts. He receives 100 units of utility for the first donut, an additional 80 for the second, an additional 60 for the third, another 50 for the fourth, and another 20 for the fifth. The marginal utility of the fourth donut is ________ and the total utility from consuming four donuts is ________.
A. 140; 290 B. 50; 40 C. 50; 290 D. 290; 100