According to the law of demand
A. people buy more of a good when the price falls.
B. people buy more of a good when the price rises.
C. people buy more of a good when their income rises.
D. people buy more of a good when the relative price rises.
Answer: A
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A ________ traces out the behavior of the economy over time
A) dynamic equilibrium B) static equilibrium C) steady-state equilibrium D) comparative equilibrium
Firms that participate in regular open market transactions with the Federal Reserve are called
A) Treasury banks. B) Federal Reserve partners. C) primary dealers. D) secondary market banks.
Refer to the inequality below. The marginal utility per dollar spent on good X is less than the marginal utility per dollar spent on good Y. According to the rule of equal marginal utility per dollar spent, what can a consumer do to increase total utility from consumption of goods X and Y?
Refer to the scenario above. The housekeeper's behavior is an example of a ________
A) moral hazard B) positive externality C) prisoners' dilemma D) tragedy of the commons