Keynes's model of the demand for money suggests that velocity is
A) constant.
B) positively related to interest rates.
C) negatively related to interest rates.
D) positively related to bond values.
B
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DeShawn's Detailing is a service that details cars at the customers' homes or places of work. DeShawn's cost for a basic detailing package is $40, and he charges $75 for this service
For a total price of $90, DeShawn will also detail the car's engine, a service that adds an additional $20 to the total cost of the package. Should DeShawn continue to offer the engine detailing service? A) yes, but only if he raises the price of the basic detailing package B) No, his marginal benefit is less than his marginal cost. C) Yes, he still makes a profit by selling the engine detailing service with the basic detailing package. D) More information is needed for DeShawn to make this decision.
When positive externalities are present in a market, it means that:
A. private benefits are less than social benefits. B. private benefits are less than external benefits. C. social benefits are less than external benefits. D. external benefits are equal to social benefits.
Which of the following is true? a. Sellers are willing to supply more of a good or service at every price after costs have increased. b. A fall in the price of a product leads to an increase in the profits earned by sellers
c. A fall in the cost of production leads to a downward movement along the supply curve of a product. d. Sellers are willing to supply more of a good or service at every price after costs have decreased. e. An increase in the price of a product leads to a fall in the profits earned by sellers.
If the equilibrium quantity of a good is also the socially optimal quantity, then:
A. total economic surplus has been maximized. B. the marginal cost to producers of another unit of the good is zero. C. it's possible to make at least one person better off without hurting anyone else. D. the marginal benefit to consumers of another unit of the good is zero.