As the price of land decreases along its demand curve, the relative price of land
a. increases because the prices of other resources have also decreased
b. decreases because the prices of other resources have also decreased
c. increases because the prices of other resources have increased
d. decreases because the prices of other resources are held constant
e. remains constant because the prices of other resources also increase
D
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The Public Service Company of Colorado is a natural monopoly in the transmission and distribution of electric power. As such, it will incur an economic loss if it
A) goes out of business. B) prices its services at average total cost. C) prices its services at marginal cost. D) all of the above
You earned $30,000 in 2007, and your salary rose to $80,000 in 2016. If the CPI rose from 82 to 202 between 2007 and 2016, which of the following is true?
A) The purchasing power of your salary increased between 2007 and 2016. B) There was deflation between 2007 and 2016. C) The purchasing power of your salary fell between 2007 and 2016. D) The purchasing power of your salary remained constant between 2007 and 2016.
The Gini coefficient for the United States in 1980 was 0.403. In 2014, the coefficient was equal to 0.480. This means that
A) income inequality increased from 1980 to 2014. B) there was a decrease in the amount of government transfer payments from 1980 to 2014. C) cuts in federal income tax rates in the early 1980s and 2001 helped to reduce income inequality. D) per capita income in the United States rose from 1980 to 2014.
Following an anticapitalist coup, Freedonia forces all citizens to turn in and stop using all credit cards. What is the most likely effect of this on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to credit cards.