In Figure 6-3(b), as price falls from $15 to $6, total expenditure
A. falls.
B. increases.
C. remains constant.
D. first falls and then increases.
Answer: B
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Which of the following statements is true?
A) Both nominal and real interest rates are procyclical and leading. B) Both nominal and real interest rates are procyclical and lagging. C) Nominal interest rates are procyclical and real interest rates are countercyclical. D) Nominal interest rates are procyclical and real interest rates are acyclical.
Which function of money allows people to specialize in areas in which they have a comparative advantage?
A) medium of exchange B) unit of accounting C) store of value D) standard of deferred payment
In a market characterized by many buyers and one seller, investment in informative advertising by a seller can ____ the price of a commodity to customers and lower their _____ cost of acquiring information
a. decrease; sunk cost b. increase; transaction cost c. increase; sunk cost d. decrease; transaction cost
If a country’s GDP DECREASES, but its debt INCREASES during that year, then the country’s debt to GDP ratio for the year will _______________ in proportion to the magnitude of the changes.
A. decrease because GDP decreased B. decrease C. increase or decrease D. increase