If the price of Pepsi-Cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the Pepsi-Cola Company could increase its total revenue by
a. lowering price
b. decreasing quantity supplied
c. leaving price the same
d. raising price
e. decreasing supply
A
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As the Fed increased the volume of loans to financial institutions in response to the 2008 financial crisis, this resulted in
a. a vast increase in the monetary base and the excess reserves of the commercial banking system. b. a substantial increase in short term interest rates. c. a sharp decrease in the monetary base and a contraction in the excess reserves of the commercial banking system. d. an increase in the volume of loans extended by commercial banks and a sharp increase in the inflation rate.
If ability is positively related to schooling, then estimating the returns to education directly from the wage-schooling profile will likely
A. overestimate the average wage. B. underestimate the average discount rate. C. underestimate the return to schooling. D. overestimate the return to schooling. E. underestimate the average wage.
A perfectly competitive firm sells its output for $100 per unit and marginal cost is $100 per unit. To maximize short-run profit, the firm should:
A. increase output. B. decrease output. C. maintain its current output. D. shut down.
Local governments provide law enforcement, which benefits society, but if the costs of law enforcement exceed the benefits, the result is a situation of
A. Market failure. B. Government failure. C. Public choice theory. D. Efficiency as long as there is some benefit.