If a firm faces a downward-sloping demand curve, its marginal revenue is
a. less than its marginal cost
b. greater than price
c. less than price
d. equal to price
e. equal to its total revenue
C
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Figure 36-5
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Which of the graphs in Figure 36-5 are consistent with an appreciation of the U.S. dollar caused by an increase in U.S. interest rates?
A. 1 B. 2 C. 3 D. 4
Which of the following is a microeconomic question?
A) Should Congress and the president take action to reduce the unemployment rate? B) Why do some countries have higher economic growth rates than other countries? C) Should companies pay for employees' health insurance? D) Should the Fed attempt to influence the interest rate to control potential inflation?
Other things equal, tax cuts favoring the rich and reductions in funding for government programs favoring the poor would be expected to:
A. increase income inequality, causing the Lorenz curve to bend away from the diagonal line. B. decrease income inequality, causing the Lorenz curve to bend toward the diagonal line. C. increase income inequality, causing the Lorenz curve to bend toward the diagonal line. D. decrease income inequality, causing the Lorenz curve to bend away from the diagonal line.
Mitchell's money income is $150, the price of X is $2, and the price of Y is $2. Given these prices and income, Mitchell buys 50 units of X and 25 units of Y. Call this combination of X and Y bundle J. At bundle J, Mitchell's MRS is 2. At bundle J, if Mitchell increases consumption of Y by 1 unit, how many units of X must he give up in order to satisfy his budget constraint?
A. 2 B. 1 C. 4 D. ½