Marginal benefit curves slope
A) upward because of increasing opportunity cost.
B) upward, but not because of increasing opportunity cost.
C) downward because of increasing opportunity cost.
D) downward, but not because of increasing opportunity cost.
D
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"Supply creates its own demand" is known as
A) Smith's law. B) Say's law. C) the circular flow. D) the Ricardian dilemma.
Which of the following is a possible explanation for the fall in prices after an industry is monopolized by combining a group of competitors?
a. A monopolist faces a downward sloping demand curve. Hence, output expansion leads to lower prices. b. A reduction in price increases producer surplus. Hence a monopolist may reduce the price of his product. c. A monopolist may reduce prices to make it difficult for other firms to compete. d. A monopolist can increase profits by reducing price when its cost of production declines due to increased size of the new firm. The fall in price is less than the decline in cost.
Price floors, when applied to agricultural markets, have
a. promoted the interests of consumers b. reflected the government's desire for greater equality in the distribution of goods among consumers c. created the need to print ration coupons d. created excess supply, which meant that the government would have to buy the excess supply to keep the prices from falling below the price floor e. created excess demand, which meant that the government had to prevent the price floor from rising above the equilibrium price
Which of the following is correct?
a. In a closed economy, equilibrium in the market for loanable funds occurs where saving = investment. b. Investment is the source for the supply of loanable funds. c. If there is a surplus in the market for loanable funds, the interest rate rises. d. All of the above are correct