Increases in the price level
A) decrease the opportunity cost of holding money.
B) increase the quantity of money needed for buying and selling.
C) increase the opportunity cost of holding money.
D) decrease the quantity of money needed for buying and selling.
B
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Which of the following statements is correct about the concept of willingness to pay?
A) The willingness to pay is the lowest price that a buyer is willing to pay for an extra unit of a commodity. B) The willingness to pay for a commodity increases exponentially as the consumption of the commodity increases. C) The willingness to pay for a commodity increases linearly as the consumption of the commodity increases. D) If a consumer is consuming 10 units of a commodity and he is ready to pay $2 for the eleventh unit, his willingness to pay for the eleventh unit is $2.
People expect that the El Niño effect will cause drought in Australia in coming years. If most Australian firms expect their profits will fall during the next five years, Australia's ________ this year
A) aggregate demand will increase B) long-run aggregate supply will increase C) aggregate demand will decrease D) short-run aggregate supply will increase
In the industrial period of U.S. history, the manufacturing goods consumed by U.S. households were subject to
(a) high taxes. (b) Engel's Law. (c) income effects. (d) none of the above.
Collusion:
A. occurs only when no dominant strategy is present. B. is a cooperative outcome between competitors. C. is observed, but economists cannot theoretically model it. D. is a theoretical concept that is rarely observed.