Refer to Figure 1.8. If the university decides to lower grading standards, then
A. This curve will shift to the left.
B. This curve will shift rightward.
C. We will slide up the curve from point B to point C.
D. The curve will begin to bend downward at an earlier point.
Answer: A
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The number of times per year that a dollar is spent on final goods and services defines
A) the income velocity of money. B) the money supply. C) the price index. D) GDP.
The advent of money market mutual funds is __________ the trend of "institutionalization," in which a __________ percentage of financial assets are directly owned by individuals
A) part of; growing B) part of; shrinking C) not a part of; growing D) not a part of; shrinking
If a competitive price-taker firm is currently producing a level of output at which marginal revenue exceeds marginal cost, then
a. a one-unit increase in output will increase the firm's profit. b. a one-unit decrease in output will increase the firm's profit. c. total revenue exceeds total cost. d. total cost exceeds total revenue.
For a given seller, the accompanying figure shows the relationship between the number of units produced and the opportunity cost of producing an additional unit of output. What is this seller's reservation price for the 250th unit?
A. $8 B. $2 C. $4 D. $14