George Gnat subscribes to a monthly pest control service for his home. Last week, the owner of the service informed George that he will have to raise his monthly service fee because of increases in the price of gasoline used by his workers on their
service trips. How is the market for pest control services affected by this?
A) There is an increase in the supply of pest control services.
B) There is a decrease in the demand for pest control services.
C) There is a decrease in the quantity of pest control services supplied.
D) There is a decrease in the supply of pest control services.
Answer: D
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For a risk averse person, the marginal utility of wealth
A) decreases as wealth increases. B) increases as wealth increases. C) decreases as wealth decreases. D) remains constant as wealth increases.
What is venture capital?
What will be an ideal response?
An economic system includes
a. money, stocks and bonds b. a mechanism for allocating resources and a mode of resource ownership c. a mechanism for dividing up resources and a way to ensure that technology advances d. a mechanism for allocating stocks, bonds and money and a mode of technology e. government ownership, labor time, and machines
Your bank account pays 3% interest per year. You loan a friend $100 for one year at zero interest. Assuming the loan is paid on time the opportunity cost of the loan is
A. $0. B. $103. C. $3. D. $100.