Based on the above figure, at which level of output does diminishing marginal returns first occur at Ike's Ice Cream Kitchen?
A) at 0 gallons
B) at 10 gallons
C) at 40 gallons
D) at 60 gallons
B
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The income effect results in consumers increasing the quantity of normal goods demanded when the price falls
Indicate whether the statement is true or false
The period between a business cycle peak and a business cycle trough is called
A) recalculation. B) recession. C) diffusion. D) expansion.
When Ryan has an income of $2,000 . he consumes 30 units of good A and 50 units of good B. After Ryan's income decreases to $1,500, he consumes 23 units of good A and 55 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods. b. Both goods A and B are inferior goods. c. Good A is a normal good, and good B is an inferior good. d. Good A is an inferior good, and good B is a normal good.
Which of the following observations is true?
A. State governments are the shareholders of the Fed. B. The Fed chairman is appointed for a ten-year term. C. FOMC decisions largely determine short-term interest rates. D. Member banks proportionately share all of Federal Reserve’s profits.