Economics is the study of
A. how people allocate their limited resources to satisfy their unlimited wants.
B. the way people think rather than the way they act.
C. how to own as many resources as possible.
D. ceteris paribus.
Answer: A
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The interest rate that banks use as a reference point for interest rates on a wide range of loans to businesses and individuals is the ________.
A. discount rate B. prime rate C. term auction rate D. real interest rate
How does rent control tend to cause persistent imbalances in the market for housing?
A. Quantity demanded exceeds quantity supplied but price cannot rise to remove the shortage. B. Quantity demanded exceeds quantity supplied but price cannot fall to remove the surplus. C. Quantity supplied exceeds quantity demanded but price cannot rise to remove the shortage. D. Quantity supplied exceeds quantity demanded but price cannot fall to remove the surplus.
In the long run,
a. at least one of the firm's inputs is fixed b. customer tastes and preferences are fixed c. the firm may vary all inputs d. sunk costs become variable costs e. government intervention is inevitable
If demand is elastic, an increase in price will decrease total revenue
a. True b. False Indicate whether the statement is true or false