If the price of pizzas has risen from $4 to $5 at the same time that the price of an hour of spinning class has risen from $20 to $30, then
A. pizzas have become relatively more expensive.
B. spinning classes have become relatively more expensive.
C. the relative prices of pizzas and spinning classes have remained constant.
D. workers’ real income must have decreased.
Answer: B
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A. It increases. B. It decreases. C. It does not change. D. The outcome depends upon the supply of the good.
Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded. However, due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing. At this point, Ray's Radios should
a. Increase production of the batteries b. Divest itself from the production of the batteries c. Shut down the production of the batteries d. None of the above
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A) externalities. B) internalities. C) private costs. D) opportunity costs.
Velocity will be ________ if the demand for money with respect to the interest rate is perfectly elastic.
A. negative B. zero C. constant D. variable