Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Figure 6.3Refer to Figure 6.3. Molly?s budget constraint is AD. It would swivel to AB if the price of
A. DVDs decreased.
B. CDs increased.
C. DVDs increased.
D. CDs decreased.
Answer: C
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Refer to Figure 2-2. The linear production possibilities frontier in the figure indicates that
A) it is progressively more expensive to produce orchids. B) the tradeoff between roses and orchids is constant. C) Vidalia has a comparative disadvantage in the production of roses. D) Vidalia has a comparative advantage in the production of orchids.
Which of the following is a final good or service?
a) a haircut purchased by a father for his 12 year-old son b) fertilizer purchased by a farm supplier c) diesel fuel bought for a delivery truck d) Chevrolet windows purchased by a General Motors assembly plant
A rational decision maker will take only those actions for which the expected marginal benefit _____
a. is positive. b. is at its maximum level. c. is greater than or equal to the expected marginal cost. d. is less than the expected marginal cost. e. exactly equals the total cost.
The Fed can reduce the money supply by reducing
A) the currency—deposit ratio. B) the monetary base. C) reserve requirements. D) the discount rate.