An increase in the price of a good causes people to buy less of it because
a. the demand for the good decreases
b. they have less income to spend on the good
c. the marginal utility from additional units of consumption of the good decreases
d. the marginal-utility-to-price ratio for the good decreases
e. consumer surplus from consumption of the good decreases
d. the marginal-utility-to-price ratio for the good decreases
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Which activity of the Fed would tend to increase the nation's money supply?
A) Sales of government bonds B) Lowering the discount rate C) Raising the required reserve ratio D) None of the above.
A recent study by Andrew Rose of the University of California showed that, on average, two countries that are members of the same currency union
A) trade three times as much with each other as countries that do not share a currency. B) trade twenty times as much with each other as countries that do not share a currency. C) trade ten times as much with each other as countries that do not share a currency. D) trade six times as much with each other as countries that do not share a currency. E) trade twice as much with each other as countries that do not share a currency.
Can a firm's accounting profit be smaller than the economic profit? Assume that all costs are positive.
What will be an ideal response?
Marginal resource cost is:
A. The increase in a firm's total cost caused by hiring one additional unit of an input B. A firm's cost of hiring one group of inputs, such as capital or labor C. The firm's demand curve for a productive resource D. Determined by the marginal physical product schedule for an input