An individual wheat farmer produces wheat in a perfectly competitive market. A decrease in the market demand for wheat will cause the farmer's marginal revenue to ________ and his profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: D
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A bank has $250 in checking deposits, $1,000 in savings deposits, $1,200 in time deposits, $1,000 in loans to businesses, $400 in outstanding credit card balances, $800 in government securities, $25 in currency in its vault, and $25 in deposits at
the Fed. Of these, ________ are part of M2. A) $2,600 B) $2,450 C) $3,450 D) $2,850 E) $2,200
If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is
A) slower growth in the price level. B) an increase in investment. C) more rapid growth in potential GDP. D) the inflation rate rises. E) an eventual slowing in the growth rate of the quantity of money.
Which of the following issues is most unlikely to be addressed by an economist practicing positive economics?
A) the relationship between the minimum wage and the number of unemployed unskilled workers B) the effect of a minimum wage increase on inner-city crime rates C) the desirability of a minimum wage increase D) the consequences of implementing a minimum wage law in China
Refer to the accompanying figure. Which of the following is true?
A. Point A is efficient because it is farthest from the origin. B. Point F is the most efficient because medical care is the highest there. C. Points B, C, E and F are efficient. D. Point D is efficient because it requires using the fewest resources.