Refer to Figure 33-2. If the economy starts at A, a decrease in the money supply moves the economy
a. to A in the long run
b. to C in the long run
c. back to A in the long run
d. to D in the long run
Ans: b. to C in the long run
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In a graph, a line has a negative slope if
A) the line is vertical. B) the line is horizontal. C) the line rises from right to left. D) the line rises from left to right.
Samara's income is $30 a month and she spends all of it on music downloads and gasoline. The price of a music download is $3 and the price of a gallon of gasoline is $3
At Samara's best affordable point, her marginal rate of substitution is ________ gallon of gasoline per music download. A) 0.5 B) 1 C) 1.5 D) More information is needed to determine the marginal rate of substitution.
If a particular perfectly competitive industry uses only a small fraction of the supply of any of its inputs, the long run supply curve for that industry will tend to be: a. vertical
b. upward sloping. c. horizontal. d. downward sloping.
Refer to Scenario 19.1 below to answer the question(s) that follow. SCENARIO 19.1: An individual earning $60,000 pays $12,000 in taxes. The marginal tax rate on any income earned above $60,000 is 25%. Refer to Scenario 19.1. Suppose this person earns $70,000 and gives a $1,000 tax deductible donation to charity. The donation reduces her tax payment by
A. $200. B. $207. C. $250. D. $1000.