The term "present value" refers to the future value of present day money.
A. True
B. False
C. Uncertain
B. False
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Which of the following changes shifts the SRAS curve up?
A) An increase in the labor force B) An increase in firms' costs C) A decrease in government purchases D) An increase in the money supply
In economic theory, the idea of the equimarginal principle, or consumer equilibrium, means:
a. consumers appear to be similar in their buying habits, which explains why prices are almost always in equilibrium. b. to maximize utility, consumers allocate all of their incomes among goods so as to equate the total utility of all units of goods purchased. c. to maximize utility, consumers must allocate their scarce incomes among only the cheapest products available. d. to maximize utility, consumers must allocate their scarce incomes among goods so as to equate the marginal utilities per dollar of expenditure on the last unit of each good purchased. e. the marginal utilities among luxury goods are always equal among certain high-income earners.
As applied to labor demand, the marginal approach to profit
a. is irrelevant b. requires setting marginal cost equal to the wage rate c. requires setting marginal revenue equal to the wage rate d. says that a firm should increase employment if doing so adds more to revenue than it adds to cost e. says that a firm should decrease employment if doing so adds more to cost than it adds to revenue
When studying how some event or policy affects a market, elasticity provides information on the
a. equity effects on the market by identifying the winners and losers. b. magnitude of the effect on the market. c. speed of adjustment of the market in response to the event or policy. d. number of market participants who are directly affected by the event or policy.