Refer to Goods X and Y. Which of the following would cause the vertical intercept to move upwards?
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions.
a. A decrease in the price of good Y.
b. An increase in the price of good X.
c. An increase in the price of good Y.
d. A decrease in the price of good Y.
d. A decrease in the price of good Y.
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If the Japanese yen appreciates from $0.01 per yen to $0.02 per yen, the U.S. dollar depreciates from ________ per dollar to ________ per dollar
A) 100¥; 50¥ B) 10¥; 5¥ C) 5¥; 10¥ D) 50¥; 100¥
A firm that is a price taker faces a perfectly ______ demand curve.
A. horizontal B. vertical C. inelastic D. convex
Refer to the graph. Each of the three labor demand curves shown slopes downward because of the:
A. law of diminishing marginal utility.
B. law of increasing opportunity costs.
C. principal-agent problem.
D. law of diminishing returns.
If the Fed wanted to expand the money supply as part of an antirecession strategy, it could
a. increase the interest rate paid on excess reserves encouraging banks to extend more loans. b. decrease the interest rate paid on excess reserves encouraging banks to extend more loans. c. decrease the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans. d. increase the interest rate paid on excess reserves encouraging banks to hold excess reserves rather than extend more loans.