Curly told Larry about his new business venture: Curly pays Acme International $1,000 per month for supplies, works out of his apartment on his own computer and earns a monthly revenue of $1,500. Should Larry quit his job and do what Curly is doing?
A. Not if Larry is earning more than $500 per month at his current job.
B. Yes, as long as Larry can work out if his apartment and owns a computer.
C. Yes, as long as Larry has at least $1,000 in savings to get started.
D. Not unless Larry can borrow the $1,000 monthly payment at no interest.
Answer: A
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A commercial bakery makes white bread and wheat bread. Therefore, a decrease in the market price of white bread tends to
A) increase the demand for wheat bread. B) increase the demand for white bread. C) increase the baker's cost of making wheat bread. D) decrease the baker's cost of making wheat bread.
Per-unit transaction costs
a. may cause the demand and supply curves to shift either inward or outward depending on the value obtained from transaction agents. b. refer only to the commission paid to a third party for each transaction made. c. are absorbed by the party seeking the transaction. d. have the same effect on behavior as do lump-sum transaction costs; the difference in terminology is purely definitional.
Suppose a country experiences an increase in its capital stock. Which curve(s) in the aggregate demand and aggregate supply model would be affected, and which way would it (they) shift?
Which one of the following is part of the official money supply in the United States?
A. Federal Reserve notes B. gold bars C. common stock D. credit card balances