Which of the following would cause a consumer to purchase less of a good when the price of the good rises?
a. The income effect
b. The substitution effect
c. Both a and b
d. Neither a nor b
c
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In the figure above, when the quantity of milk produced is 300 gallons per day, what is the deadweight loss?
A) $62.50 B) $125 C) $200 D) $937.50
As output increases, total fixed cost
a. increases. b. remains constant. c. rises and then falls. d. falls and then rises.
A decrease in the liquidity of corporate bonds will ________ the yield of corporate bonds and ________ the yield of Treasury bonds, everything else held constant
A) increase; increase B) decrease; decrease C) increase; decrease D) decrease; increase
Government purchases
a. are only weakly related to aggregate income b. include spending on goods and services plus transfer payments c. are inversely related to aggregate income d. are inversely related to the price level e. are inversely related to the interest rate