Answer the following statement(s) true (T) or false (F)
1. Producers’ decisions are modeled through the demand function, and consumers’ decisions are captured by the supply function.
2. Two characteristics of a private good are rivalry in consumption and excludability.
3. A change in price results in a shift in the demand curve.
4. The demand price represents the consumer’s willingness to pay for the good.
5. Conventionally, the graph of demand uses the inverse form of the demand function, which isP = f(QD).
1. False
2. True
3. False
4. True
5. True
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The Fed's purchase of U.S. government securities constitutes a(n):
a. contractionary policy because it lowers the amount of total reserves in the banking system. b. contractionary policy because it lowers the amount of excess reserves in the banking system. c. expansionary policy because it raises the amount of total reserves in the banking system. d. expansionary policy because it lowers the amount of total reserves in the banking system. e. expansionary policy because it raises the amount of required reserves in the banking system.
When marginal cost is increasing, average total cost must be increasing
a. True b. False Indicate whether the statement is true or false
Older people often reminisce about the "good old days" when prices were much lower. This is misplaced nostalgia primarily because in the "good old days,"
a. prices were not really that low. b. wages were much lower also. c. people worked longer hours. d. people had more leisure time.
Combinations in restraint of trade are prohibited by
A. the Sherman Act. B. The Clayton Act. C. the Federal Trade Commission Act.