Which of the following will occur as the price of a good decreases?
A) The demand curve for that good will shift to the left.
B) The demand curve for that good will shift to the right.
C) The quantity demanded for that good will increase.
D) Demand for that good will increase.
Answer: C
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Indicate whether each of the following transactions represents the purchase of a final good
1. The purchase of tires from Bridgestone by an automobile manufacturer? 2. The purchase of two new elementary school buildings by the state government? 3. The purchase of french wine by a US consumer? 4. The purchase of a new machine tool by the Ford Motor company?
What is a fractional reserve banking system? How long has the fractional reserve banking system been in existence?
What will be an ideal response?
A consumer's willingness to trade one good for another can be expressed by the consumer's
A) indifference curve. B) marginal rate of substitution. C) Both A and B above. D) None of the above.
In order for an individual to be indifferent between holding foreign or domestic bonds,
A) the Marshall-Lerner condition must hold. B) the foreign and domestic interest rates must be equal. C) the expected rate of depreciation of the domestic currency is zero. D) the interest parity condition must hold.