The substitution effect of a decrease in the price of movie tickets results in
A) a decrease in the quantity of movie tickets demanded.
B) an increase in the demand for movie tickets.
C) an increase in the quantity of movie tickets demanded.
D) a decrease in the demand for movie tickets.
C
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If the supply of loanable funds curve shifts rightward from the curve shown in the figure above, the shift could be the result of
A) a decrease in the demand for loanable funds. B) a decrease in disposable income. C) a decrease in the supply of loanable funds. D) a fall in expected future income. E) an increase in wealth.
To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.
Suppose that a firm's capital equipment is expected to last indefinitely, that operating expenses on the equipment are negligible, and that the price of the firm's product is expected to remain constant in the future. Under these circumstances, the firm's marginal rate of return on investment is equal to capital's
a. marginal resource cost as a percentage of its marginal revenue product b. marginal product as a percentage of its marginal revenue product c. marginal revenue product as a percentage of its marginal product d. marginal resource cost as a percentage of the price of capital e. marginal revenue product as a percentage of its marginal resource cost
A good that is expected to last less than one year is a
a. durable good b. service c. nondurable good d. short-term good e. perishable good