Sam has $500 saved up for his spring break. He also carries about $300 of debt on his credit card. By choosing not to pay off his credit card with his savings, Sam is:
A. acting rationally.
B. going to be poorer in the long run.
C. recognizing that money is fungible.
D. None of these is true.
B. going to be poorer in the long run.
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Which of the following increases the demand for a normal good?
A) a decrease in income B) an decrease in the price of a substitute C) an increase in the price of a complement D) the price of the good is expected to increase in the future
Which of the following is one of the most widely followed stock indexes in the United States?
A) the Fortune 500 B) the Securities and Exchange Commission C) the Dow Jones Industrial Average D) the Chicago Mercantile Exchange
A firm's demand for labor is known as a "derived demand" because:
a. the firm gains utility from hiring more labor. b. the amount of labor hired depends upon how much output the firm can sell. c. the wage rate paid to workers is derived from the market for labor. d. it's derived from the demand for capital.
Compared to the perfectly competitive outcome, monopolistically competitive markets will result in:
a. a wider variety of products and higher prices. b. less product variety and higher prices. c. a wider variety of products and lower prices. d. less product variety and lower prices.