If Alex uses $800 from her checking account to pay her credit card balance, her wealth:
A. increases by $800.
B. does not change.
C. decreases by $800.
D. increases by $1,600.
Answer: B
You might also like to view...
Roses are more expensive on Valentine's Day than at other times of the year, yet sales of roses are highest on that day. How does economic theory account for this?
A) An increase in demand pushes up the market clearing price of roses. B) People buying the roses are irrational. C) Roses are not subject to the law of demand. D) Florists know that there are no substitutes for roses, so they take advantage of consumers on Valentine's Day.
If a factory hires 1,000 new workers, the nation's output level is probably
a. increasing and unemployment is likely to increase b. increasing and unemployment is likely to decrease by 1000 individuals c. fluctuating d. stable e. increasing and unemployment is likely to decrease by less than 1,000 individuals
The figure shows the total product curve for a ski manufacturer. How many workers should the firm hire if its objective is to maximize its weekly production?
a. 1 b. 3 c. 2 d. 4
The ATC curve for a firm that produces an information product
A. slopes downward, because AVC is constant, AFC slopes downward, and ATC = AVC + AFC. B. slopes upward, because AFC is constant, AVC slopes upward, and ATC = AFC + AVC. C. slopes downward, because MC slopes downward, AVC is constant, and ATC = AVC +MC. D. is U-shaped, because AVC is U-shaped, AFC slopes downward, and ATC = AVC + AFC.