The law of diminishing marginal utility guarantees that demand curves will have positive slopes
a. True
b. False
Indicate whether the statement is true or false
False
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Use the following graph, where Sd and Dd are the domestic supply and demand for a product and Pc is the world price of that product, to answer the next question.
Sd + Q is the product supply curve after an import quota is imposed. A quota of y?w will result in a decrease of consumer surplus equal to area(s)
A. E. B. E + F + G + H + J. C. K. D. E + F +K.
The current account records all transactions below EXCEPT for
A) net exports of goods and services. B) net interest income. C) net foreign investment. D) net transfers.
An increase in the interest rate, other things constant, will: a. shift the demand for loanable funds curve to the right. b. shift the demand for loanable funds curve to the left. c. decrease the quantity of loanable funds supplied
d. decrease the quantity of loanable funds demanded. e. shift the supply of loanable funds curve to the right.
Suppose a city that operates local electric and natural gas companies wants to raise revenues by increasing its rates for electricity and natural gas. The price rise will increase city revenues if the elasticity of demand for electricity and natural gas is
a. inelastic. b. elastic. c. negative. d. equal to -1.