Which of the following is an important ingredient of efficient economic organization?
a. high marginal tax rates
b. competitive markets
c. rapid increases in the money supply
d. imposition of high tariffs that will protect domestic producers from the ravages of foreign competition
B
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The quantity theory of money asserts that an increase in the quantity of money leads to an equal percentage increase in the price level in the long run
Indicate whether the statement is true or false
The total utility from consuming five cups of coffee is 15, 27, 37, 46, and 54 utils, respectively. The marginal utility of the fourth cup of coffee is: a. 48. b. 54. c. 9
d. 6.
If a market is allowed to move freely to its equilibrium price and quantity, then an increase in supply will
a. increase consumer surplus. b. reduce consumer surplus. c. not affect consumer surplus. d. Any of the above are possible.
A change in the supply of one factor of production
a. will not change either the marginal productivities or the prices of other factors.
b. will not change the prices of other factors, but it may change their marginal productivities.
c. will not change the marginal productivities of other factors, but it may change their prices.
d. changes the marginal productivities and the prices of other factors.