An increase in the market interest rate will _____
Fill in the blank(s) with the appropriate word(s).
decrease investment for individual firms, so total investment in the economy decreases.
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After the September 11th attack on the World Trade Center, and with the emergence of the anthrax scare, the price and the purchases of gas masks jumped dramatically in New York City. In the economic way of thinking, which of the following occurred?
A) The supply curve for gas masks shifted to the right. B) The supply curve for gas masks shifted to the left. C) The demand curve for gas masks shifted to the right. D) The demand curve for gas masks shifted to the left. E) The demand curve for gas masks became upward-sloping.
The rule of rational choice: a. requires the availability of complete information before decisions can be made. b. can only be applied in business decisions
c. involves "marginal thinking." d. is the basis on which only greedy people make decisions.
When a person is risk-preferring, his indifference curves are
a. convex. b. concave. c. linear. d. upward sloping.
Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving technology that uses computers to monitor the locations of swimmers in the pool. What happens to the equilibrium wage and quantity of life guards?
a. Both the equilibrium wage and quantity increase. b. Both the equilibrium wage and quantity decrease. c. The equilibrium wage increases, and the equilibrium quantity decreases. d. The equilibrium wage decreases, and the equilibrium quantity increases.