An increase in the price of product G will result in a(n):
a. Decrease in the demand for G
b. Larger quantity of G demanded
c. Smaller quantity of G demanded
d. Increase in the demand for G
c. Smaller quantity of G demanded
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Define the following terms completely and concisely. a. Marginal revenue b. Average revenue c. Optimal decision d. Satisficing e. Marginal profit
What will be an ideal response?
Dale just won tickets to see a NASCAR race. His coworker offers to pay him $200 for them, but Dale decides to use them, even though he would not pay $200 for them himself. Dale's willingness to consume $200 worth of tickets that he doesn't value at $200 is attributed to:
A. the explicit cost of ownership. B. the high fungibility of money. C. his refusal to ignore the sunk cost of the tickets. D. None of these is correct.
If a country has a comparative advantage in the production of all goods, it should:
a. specialize in the production of goods with the lowest opportunity cost. b. specialize in the production of goods with the highest opportunity cost. c. specialize in the production of goods with the absolute advantage. d. specialize in the production of goods without the absolute advantage. e. not specialize at all and produce all the goods itself.
If the inflation rate is 2% and the real interest rate is 1%, then the nominal interest rate is around
A. 1%. B. 3%. C. 2%. D. -1%.