Assuming that good "x" is measured on the x-axis and good "y" is measured on the y-axis, if the utility for the two goods "x" and "y" can be measured as U = x, then it can be concluded that
A) "x" and "y" are perfect complements.
B) "y" is a "bad".
C) the indifference curves on the x,y graph are upward sloping.
D) the indifference curves on the x,y graph are vertical.
D
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The Pat Summerall School of Diction is employing teachers such that the marginal revenue product of teachers exceeds the wage rate. The school will
a. reduce its demand for teachers b. lay off teachers c. be losing money from those teachers employed d. hire more teachers e. increase the price of diction classes
Assume a simplified banking system in which all banks are subject to a uniform reserve requirement of 20 percent and checkable deposits are the only from of money. A bank that received a new checkable deposit of $10,000 would be able to extend new loans up to a maximum of:
a. $2,000 b. $8,000. c. $9,000 d. $10,000.
Two goods are complements if a decrease in the price of one causes an increase in the demand for the other good
a. True b. False Indicate whether the statement is true or false
A public good is
a. any good produced by a unit of government. b. priced in the market like private goods. c. the source of the free-rider dilemma. d. only consumed by the purchaser.