Aunt Agatha has just left her nephew $5000. The most likely response is for her nephew to
A. decrease current consumption, but increase future consumption.
B. increase both current consumption and future consumption.
C. increase future consumption, but not current consumption.
D. increase current consumption, but not future consumption.
Answer: B
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Answer the next question on the basis of the following demand schedule.PriceQuantity Demanded$615243342516Which of the following is correct?
A. Although the slope of the demand curve is constant, price elasticity of demand goes from inelastic to elastic as we move from high to low price ranges. B. Although the demand curve is convex to the origin, price elasticity of demand is constant throughout. C. Although the slope of the demand curve is constant, price elasticity of demand goes from elastic to inelastic as we move from high to low price ranges. D. A steep slope means demand is relatively inelastic; a flat slope means demand is relatively elastic.
In terms of location decisions, firms evaluate the extent to which the labor force is unionized
Indicate whether the statement is true or false
A reduction in a monopolist's fixed costs would
a. decrease the profit-maximizing price and increase the profit-maximizing quantity produced. b. increase the profit-maximizing price and decrease the profit-maximizing quantity produced. c. not effect the profit-maximizing price or quantity. d. possibly increase, decrease or not effect profit-maximizing price and quantity, depending on the elasticity of demand.
When money demand is expressed in a graph with the interest rate on the vertical axis and the quantity of money on the horizontal axis, an increase in the interest rate
A. decreases the quantity demanded of money. B. does none of these answers. C. increases the quantity demanded of money. D. increases the demand for money. E. decreases the demand for money.