Refer to the accompanying figure. For Jeff, the consumption of movies reflects the law of:
A. total utility maximization.
B. marginal utility maximization.
C. demand.
D. diminishing marginal utility.
Answer: D
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Government regulation of the prices and entry conditions in an industry is an example of
a. safety regulation b. economic regulation c. Herfindahl regulation d. antitrust regulation e. Social Security legislation
A recession is characterized by:
A. a period of significant increase in economic activity. B. falling GDP. C. constant unemployment. D. an increase in the general price level.
Rapid economic growth, stable prices and __________ are the three important macroeconomic goals about which most economists agree
a. an unemployment rate of zero b. zero inflation c. full employment d. a high exchange rate e. low interest rates
Suppose the price of a product increases from €50 to €70 and the quantity supplied rises from 40 a day to 80. What is the Price Elasticity of Supply?
a) 0.5. b) -0.5. c) 2.5. d) -2.5.