Which of the following describes the law of demand? When other things remain the same, as
A) the price of gas falls, the quantity demanded of gas increases.
B) the quantity demanded of bread increases, the price of bread falls.
C) the price of peanut butter increases, the quantity demanded of jelly decreases.
D) your income increases, you'll buy more hamburgers.
E) more people decide to eat pizza, the demand for pizza increases.
A
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The value of a country's currency, in terms of some other country's currency, is called
A. the exchange rate. B. the stock exchange. C. the nominal interest rate. D. dollarization.
Competitive offers to buy and sell resources establish money prices, which reflect relative scarcities
A) in all economic systems. B) in any economic system where efficiency is important. C) only when there are no sunk costs to be recovered. D) when resources are privately owned.
Using time-series data, the demand function for a profit-maximizing monopolist has been estimated asQd = 142,000 - 500P + 6M - 400PRwhere Qd is the amount sold, P is price, M is income, and PR is the price of a related good. The estimated values for M and PR in 2014 are $25,000 and $200, respectively. The short-run marginal cost curve for this firm has been estimated as:MC = 200 - 0.024Q + 0.000006Q2Total fixed cost is forecast to be $500,000 in 2016.What is the average variable cost function?
A. AVC = 200 - 0.048Q + 0.000036Q2 B. AVC = 200 - 0.048Q + 0.000012Q2 C. AVC = 200 - 0.012Q + 0.000018Q2 D. AVC = 200 -0.012Q + 0.000002Q2
Elaine owns a beautiful diamond ring she purchased for $2,500. When she has it appraised she learns that it is now worth $3,000. Based on this information:
A. Elaine's wealth is unchanged. B. Elaine's saving this year has increased by $500. C. Elaine's saving this year has decreased by $500. D. Elaine has experienced a $500 capital gain.