This farmer's shutdown point is at a price of
A. $0.
B. $4.
C. $7.
D. $10.
C. $7.
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Spending on durable goods, nondurable goods, and services is included in:
A. investment. B. net exports. C. consumption expenditures. D. government purchases.
The principal innovation that increases the safety of bank deposits is
a. computerized accounting systems. b. credit cards. c. automatic teller machines. d. deposit insurance.
Markets may have difficulty providing the proper quantity of a public good because
a. individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good. b. the good generally has a very large value to consumers relative to its cost of production. c. the good is one that tends to benefit a large number of people. d. the large profit involved in the production of a public good is generally too much for private firms to effectively pay out to shareholders.
Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the
decrease in the price of hamburgers is best explained by: A. the substitution effect. B. the income effect. C. the price effect. D. a rightward shift in the demand curve for hamburgers.