In the above figure, Mark's monthly budget line for movies and plays changed, as shown by the arrow. Responding to this change, Mark probably will see
A) fewer movies and fewer plays.
B) fewer movies and more plays.
C) more movies and fewer plays.
D) more movies and more plays.
B
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Alpha has $40,000 of capital per worker, while Beta has $5,000 of capital per worker. In all other respects, the two countries are the same. According to the principle of diminishing returns to capital, an additional unit of capital will increase output ________ in Alpha compared to Beta, holding other factors constant.
A. more B. not at all C. less D. by the same amount
Opportunity cost is defined as the value or benefit of the
A. equilibrium price. B. next best alternative. C. most valuable item. D. least valuable item.
The reserve ratio is 20 percent and all loan proceeds are deposited in transactions accounts. A bond dealer has $100 million in deposits, $8 million in vault cash, and $7 million in deposits at the Fed. The Fed sells $1 million in securities to the bond dealer, who subsequently deposits the $1 million into a bank. As a result of this transaction alone
A. the money supply rises by $1 million, total reserves fall by $800,000. B. the money supply rises by $1 million, but reserves do not change. C. the money supply falls by $1 million and total reserves fall by $1 million. D. the money supply falls by $1 million and total reserves rise by $1 million.
When total revenue remain unchanged when there is a change in price, demand is
A) unit-elastic. B) inelastic. C) elastic. D) not related.