The Bear Corporation finds that its total spending on machine parts increases after the price of machine parts falls, other things being equal. Which of the following is true about the Bear Corporation's demand for machine parts with the price change?
A. It is unit elastic
B. It is price elastic
C. It is price inelastic
D. It is perfectly inelastic
B. It is price elastic
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The table above shows the marginal private benefit, marginal social benefit, and marginal cost of education at the College of Epsilon. What is the efficient number of students at the college?
A) 1,000 B) 3,000 C) 4,000 D) 5,000
The impact of monetary policy on the exchange rate is emphasized by
A) supply-side economists. B) Monetarists. C) Keynesians. D) rational expectations theorists.
If a product which costs $8 is sold at $10, the mark-up is
A) $2. B) 25%. C) 20%. D) None of the above
The consumer's optimal choice is the one in which the marginal utility per dollar spent on good X is
a. equal to the marginal utility per dollar saved on good X. b. greater than the marginal utility per dollar spent on good Y. c. equal to the marginal utility per dollar spent on good Y. d. less than the marginal utility per dollar spent on good Y.