Diana tutors Tiago for two hours before his economics final exam. Tiago pays Diana through a direct transfer from his bank on a payment app. Diana then uses her debit card to buy pizza for dinner from the local pizza parlor. This is an example of
a. the exchange of money facilitating production and trade
b. trade between two people who each have a good or service that the other wants.
c. an inefficient allocation of scarce resources.
d. the creation of money through monetary policy.
a
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If the dollar falls in value compared to other currencies, what will happen in the United States?
A. A decrease in aggregate demand B. An increase in aggregate supply C. A decrease in aggregate supply D. A decrease in the U.S. price level
In a competitive market with no externalities,
A) the consumer surplus is equal to zero because of competition. B) buyers cannot control the price, so the consumer surplus is zero. C) at the equilibrium price, marginal benefit exceeds marginal cost. D) at the equilibrium price, marginal benefit equals marginal cost. E) at the equilibrium price, the total amount of consumer surplus equals the total amount of producer surplus.
If a positive externality results from the consumption of higher education, then the marginal benefit students receive from education:
a. equals the marginal social benefit b. is less than the marginal social benefit. c. includes the marginal external benefit. d. exceeds the marginal social benefit.
According to rational expectations, if policy makers consistently stimulate aggregate demand when real output falls below the economy's potential output, then people will not be able to anticipate the effects of this policy on the price level, unemployment, and the real output level
Indicate whether the statement is true or false