To enhance their prestige, some country clubs like to point to the fact that they have a waiting list for new members
Even at clubs with high initiation fees, it is common that prospective members have to wait three or more years before there is room for them on the membership rolls. How do these country clubs set the price of membership to ensure that they have a waiting list? A) Set the membership price above the market clearing price.
B) Set the membership price below the market clearing price.
C) Set the price so that the quantity supplied of memberships exceeds the quantity demanded.
D) Set the price at a level that will generate a surplus of memberships.
B
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Based on the figure above, short-run equilibrium occurs at the price level of
A) 120 and real GDP of $5 trillion. B) 130 and real GDP of $10 trillion. C) 140 and real GDP of $15 trillion. D) 130 and real GDP of $15 trillion.
In a study published in 1963, Milton Friedman and Anna Schwartz found that in every business cycle they studied over nearly a hundred-year period
A) the growth rate of the money supply decreased before output decreased. B) interest rates decreased before output decreased. C) the growth rate of federal government spending decreased before output decreased. D) the growth rate of state and local government spending decreased before output decreased.
Which word best completes the following sentence? A rational decisionmaker always chooses the option for which marginal benefit is ________ marginal cost
a. equal to b. less than c. more than d. unrelated to
In general, as wages increase:
A. the benefit of working goes down. B. people are willing to work more. C. it does not affect people's willingness to work. D. people are willing to work less.