The interest-rate effect is the impact on real GDP caused by the ____ relationship between the price level and the interest rate
a. direct
b. independent
c. linear
d. inverse
a
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Suppose that demand for a good decreases and, at the same time, supply of the good decreases. What would happen in the market for the good?
a. Equilibrium price would decrease, but the impact on equilibrium quantity would be ambiguous. b. Equilibrium price would increase, but the impact on equilibrium quantity would be ambiguous. c. Equilibrium quantity would decrease, but the impact on equilibrium price would be ambiguous. d. Equilibrium quantity would increase, but the impact on equilibrium price would be ambiguous.
Refer to Figure 4-4. At the equilibrium price of $15 consumers are willing to buy 80 pounds of tiger shrimp. Is this an economically efficient quantity?
A) No, the marginal benefit of the 80th unit exceeds the marginal cost of the 80th unit.
B) No, the marginal cost of the 80th unit exceeds the marginal benefit of the 80th unit.
C) Yes, because marginal cost is zero at the 80th unit.
D) Yes, because $15 is the price where the marginal benefit is equal to the marginal cost.
A movement along the supply curve is caused by a change in a good's own price.
Answer the following statement true (T) or false (F)
Stan complains to his roommate that he never has enough time to finish all the homework he's assigned, and his roommate tells him to quiet down because the first of the three movies they've planned to watch that day has begun. Stan's behavior demonstrates which economic concept?
A. time inconsistency B. chronologically challenged behavior C. rational behavior D. time allocation