The ________ describes the combinations of interest rates and aggregate output for which the quantity of money demanded equals the quantity of money supplied
A) IS curve
B) LM curve
C) consumption function
D) investment schedule
B
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Going skiing will cost Adam $80 a day. He also loses $40 per day in wages because he has to take time off from work. Adam still decides to go skiing
A) His decision is rational if Adam's marginal benefit of spending a day skiing is greater than his marginal cost. B) The $80 price of skiing is not an opportunity cost and so did not affect Adam's decision. C) He loses a total of $120 per day, so his decision is irrational. D) Adam's lost $40 per day in wages is not an opportunity cost and so did not affect his decision. E) Adam is definitely making a decision that is in the social interest.
Rent controls typically end up
a. increasing rents received by landlords b. raising property values c. encouraging landlords to overspend for maintenance d. discouraging new housing construction e. unnecessarily increasing the long-run supply of housing
he? "normal" underlying level of unemployment in the economy is
What will be an ideal response?
When a firm has a monopoly in a market and also perfectly price discriminates, total welfare
A) is maximized. B) is lower than in a perfectly competitive market. C) is higher than in a perfectly competitive market. D) is minimized.