Which of the following does not meet the economic definition of saving?
A. A graduate assistant spends all of his income on tuition
B. A student deposits money in her savings account
C. A professor spends less than he makes each month
D.The president's secretary puts cash under her mattress
A. A graduate assistant spends all of his income on tuition
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An economist who would most likely use active policy making would support which of the following conclusions?
A) Demand shocks have little or no short-run effects on real Gross Domestic Product (GDP) and unemployment. B) Pure competition is not typical in most markets. C) Price flexibility is common in most markets. D) Supply shocks explain most business cycles.
If the costs of producing pizza increase, which will occur?
A) The supply of pizza will decrease. B) The demand curve for pizza will shift leftward when the price of a pizza increases. C) Pizza will cease to be produced and sold. D) The quantity of pizzas supplied will increase as sellers try to cover their costs. E) The demand curve for pizza will shift rightward when the price of a pizza increases.
Production of a good produces pollution that is very damaging with each additional unit. A monopoly facing a very elastic demand curve will most likely produce
A) less than the social optimum of the good. B) more than the social optimum of the good. C) the social optimum of the good. D) no externality.
A utility-maximizing consumer will
a. consume at a point on her budget line b. consume each good until its marginal utility is zero c. adjust her consumption pattern so that the marginal utilities of all goods are equal d. consume more of a good only if its price rises e. stop consuming any good whose price rises