Suppose that initially the price of a bag of jellybeans is $6, and the price of a bottle of cola is $2. If the price of a bottle of cola increases, then the relative price of jellybeans
A) increases.
B) decreases.
C) stays the same, but the relative price of cola increases.
D) stays the same, but the relative price of cola decreases.
B
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Historical note: Since the end of World War II, the U.S. economy has experienced
a. no recessions b. one recession c. approximately one recession each year d. 100 recessions e. 11 recessions
Suppose you found Eurodollars in a public park and reported it to the police. After 10 days, the police called to say that no one claimed those Eurodollars. They're now yours. The police have never seen Eurodollars before and ask: "What are these things?" You tell them it's money. "What kind of money?" they ask. You reply
a. M1 money b. M2 money c. specie d. near money e. asset money
The slower the marginal utility declines as more of a good is consumed the:
A. larger the opportunity cost of the good. B. smaller the elasticity of demand. C. smaller the opportunity cost of the good. D. greater the elasticity of demand.
Government intervention can be justified on efficiency grounds when at least one of the efficiency conditions are not being met.
Answer the following statement true (T) or false (F)