People have a demand for liquidity because
A) liquidity increases one's options.
B) the rate of interest is positive.
C) they have confidence in their own future earning power.
D) they prefer present goods to future goods.
A
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A monopolist in the radio industry has two radio-making plants. The marginal cost of radio production by Plant A is $4Q (where Q is the number of radios produced) and the marginal cost of radio production by Plant B is always $16. If the demand curve for radios is downward sloping, the monopolist will
A. never produce radios at Plant A. B. always produce four times as many radios at Plant B as at A. C. never produce more than four radios at Plant A. D. produce radios at Plant A only as a last resort.
Suppose that the price of a jar of peanut butter is $5 and the price of a jar of jelly is $3. What is the relative price of a jar of peanut butter?
A) 2.400 B) 0.417 C) 0.250 D) 1.667
With regard to the question "What were the lives of those who died in the Civil War (1861–1865) worth?" Hughes and Cain (2011) conclude that
(a) there is no way to answer this question because people have infinite worth. (b) an estimate can be made by calculating the value of the loss of "human capital." (c) the worth was close to zero because of the surplus of population that existed at the time. (d) the worth of Northern lives lost was greater because the Northerners were fighting against the evils of slavery.
At prices below a consumer's willingness to pay:
A. the buyer will not participate in the market because the opportunity cost is more than the benefit from consuming the good. B. the buyer will not participate in the market because the opportunity cost is less than the benefit from consuming the good. C. the buyer will participate in the market because the opportunity cost is more than the benefit from consuming the good. D. the buyer will participate in the market because the opportunity cost is less than the benefit from consuming the good.