The quantity of money has no real impact on things people really care about like whether or not they have a job. Most economists would agree that this statement is appropriate concerning
a. both the short run and the long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the long run nor the short run.
c
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If the price of a good falls, before the amount consumed changes the marginal utility per dollar from that good
A) decreases. B) increases. C) might either increase or decrease depending on whether the good is a substitute or a complement. D) More information is needed to determine the answer.
Economic efficiency in a competitive market is achieved when
A) economic surplus is equal to consumer surplus. B) consumers and producers are satisfied. C) the marginal benefit equals the marginal cost from the last unit sold. D) producer surplus equals the total amount firms receive from consumers minus the cost of production.
If the price effect outweighs the income effect of a wage increase, the labor-supply curve will:
A. slope downward. B. slope upward. C. be perfectly horizontal. D. be perfectly flat.
Money serves as a medium of exchange, which means:
a. it acts as an intermediary between the buyer and the seller. b. it will still hold its value. c. it is the ruler by which other values are measured. d. it must also be acceptable to make purchases today that will be paid in the future.