Assume the supply function for good X can be written as Qs = -100 + 27Px - 5Py - 1.8W where Px = the price of X, Py = the price of good Y, and W = Wage index for workers in industry X
This equation implies that X and Y are substitutes in production. Indicate whether the statement is true or false
TRUE
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The largest component of the M1 measure of money is
A) currency. B) demand deposits. C) other checking deposits. D) money-market mutual funds.
Fire protection is a
a. club good, because it is excludable but not rival in consumption. b. club good, because it is rival in consumption but not excludable. c. a public good, because it is excludable but not rival in consumption. d. a public good, because it is rival in consumption but not excludable.
A firm will go out of business if price is below
A. marginal cost. B. marginal revenue. C. average total cost. D. average fixed cost.
The total value added
A. equals the sum of the prices on the intermediate goods. B. equals the retail price less the wholesale price. C. equals the retail price. D. equals the wholesale price.