Joe consumes pizza and movies. Pizza and movies are substitutes. According to marginal utility theory, if the price of a pizza rises then
A) the demand curve for pizza shifts leftward.
B) the demand curve for pizza shifts leftward and the demand curve for movies shifts rightward.
C) there is an upward movement along the demand curve for pizza.
D) there is an upward movement along the demand curve for pizza and the demand curve for movies shifts rightward.
D
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The U.S. dollar exchange rate, e, expressed as Japanese yen per U.S. dollar, will depreciate when:
A. the U.S. Federal Reserve tightens monetary policy. B. real GDP in Japan increases. C. real GDP in Japan decreases. D. U.S. consumers decrease their preference for Japanese cars.
Profit is the factor price for ________
A) capital B) land C) entrepreneurship D) labor
Firms operating in a _____ market sell their products in a market where other firms produce identical products
a. monopoly b. perfect competitive c. monopsony d. duopoly
Which of the following will increase the excess reserves of commercial banks?
a. a reduction in the reserve requirement ratio b. an increase in the discount rate c. the sale of government bonds by the Fed to the public d. the sale of government bonds by the Treasury to the public