The portion of a resource's earnings greater than the amount required to keep the resource in its present use is called:
a. the price of the resource.
b. the opportunity cost of the resource.
c. economic rent.
d. income.
c
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Terence has $50 per week to spend on Subway sandwiches and milkshakes. The price of a Subway sandwich is $5 and the price of a milkshake is $4. He buys 6 sandwiches and 5 milkshakes
The marginal utility of the 6th sandwich = 25 and the marginal utility of the 5th milkshake = 24. Which of the following is true? A) He is maximizing his utility. B) He is not maximizing his utility and should buy more Subway sandwiches. C) He is not maximizing his utility because he is not spending all of his income. D) He is not maximizing his utility and should buy more milkshakes.
Other things held constant, investment in physical capital will increase: a. labor productivity. b. national income
c. wages. d. all of the above
When technological progress occurs, the production possibilities curve
a. shifts inwards to the left b. becomes flatter in one end and steeper at the other end c. becomes steeper d. shifts outwards to the right e. does not change
Monetarists believe that velocity
A) is constant. B) changes erratically. C) and the money supply always have an inverse relationship. D) changes in a way that can be understood and predicted.