In the U.S., studies have shown that as real incomes have risen, per capita demand for food has been increasing by a much lower percentage
Indicate whether the statement is true or false
True
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The consumption theories proposed by Modigliani and Friedman suggest that during recessions consumers reduce
A) consumption and maintain saving. B) saving and maintain consumption. C) consumption and saving. D) consumption and investment.
Suppose the market demand curve for a good passes through the point (quantity demanded = 100, price = $25). If there are five buyers in the market, then
a. the marginal buyer's willingness to pay for the 100th unit of the good is $25. b. the sum of the five buyers' willingness to pay for the 100th unit of the good is $25. c. the average of the five buyers' willingness to pay for the 100th unit of the good is $25. d. all of the five buyers are willing to pay at least $25 for the 100th unit of the good.
Denise is thinking about setting up a butterfly garden in her backyard. She estimates that it will cost her $2,000 to purchase and install special plants and an irrigation system to attract butterflies. The benefit she expects to receive is $1,800. In addition, neighbor Billy will receive a benefit of $150 and neighbor Sammy will receive a benefit of $100. From this, we can conclude that:
A. butterflies are a negative externality for Billy and Sammy. B. Denise will set up the butterfly garden without any help from her free-rider neighbors. C. if Sammy refuses to contribute to the butterfly garden, he will be unable to enjoy its benefits if it is built. D. if Billy and Sammy contribute the amounts at which they value the butterfly garden, Denise will set it up.
Prior to the financial crisis of 2007-2009 banks did all but which of the following to bulk up their profit:
A. colluded to fix benchmark interest rates. B. traded securities for customers. C. purchased equities for their own account. D. bought or sponsored hedge funds.