Which of the following is held constant along the demand curve?
A. income
B. quantity
C. price of the good
D. both A and B
Answer: A
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The "tragedy of the commons" refers to
a) farmers who allow their livestock to overgraze their fields b) the acceptance of deplorable working conditions by those who lack the human capital to obtain a better job c) the absence of incentives to prevent the overuse and depletion of a commonly used resource d) the tendency for bureaucrats to maximize their budget
Figure 10-4
Figure 10-4 shows the industry's supply and demand curves in panel (1) and the cost curves of a firm in the industry in panel (2). At S2, the firm is
a.
going to shut down.
b.
incurring losses.
c.
earning zero economic profits.
d.
earning economic profit greater than zero.
The law of diminishing marginal productivity implies that identical increases in all inputs eventually will result in smaller incremental increases in total output.
Answer the following statement true (T) or false (F)
If the required reserve ratio, m, is 20 percent, then the oversimplified money multiplier is
A. 10 B. 5 C. 4 D. 2