One reason the demand curve slopes ________ is that as prices fall ________.
A. downward; more people find that the price is now less than their reservation price
B. downward; fewer people find that the price is now less than their reservation price
C. upward; more people find that the price is now less than their reservation price
D. upward; fewer people find that the price is now less than their reservation price
Answer: A
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Fred receives a $14,000.00 per year grant by the federal government because he is disabled. This is a
A) demerit good. B) transfer payment. C) non-rival good. D) free rider problem.
The utility of a good measures its satisfaction rather than its usefulness
a. True b. False Indicate whether the statement is true or false
If suppressed technologies exist then
A) CEOs must stress market share. B) CEOs are being inefficient. C) markets are too competitive. D) government must fund R and D.
Suppose that the marginal product of a firm's labor is 10 units of output per hour. Also assume that the marginal product of the firm's capital is 30 units of output per hour. In this case, the marginal rate of technical substitution for labor with capital is:
A. 3. B. 300. C. 40. D. 1/3.