A market demand curve reflects the
A) marginal social benefits of consuming a product.
B) sum of private and social benefits of consuming a product.
C) marginal private benefits of consuming a product.
D) external benefits of consuming a product.
C
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Suppose the Fed pursues a policy that leads to higher interest rates in the United States. How will this policy affect real GDP in the short run if the United States is an open economy? This policy
A) reduces investment spending and consumption spending, both of which reduce GDP. Net exports fall which increases GDP. B) increases investment spending, consumption spending, and net exports, all of which increase GDP. C) reduces investment spending and consumption spending, both of which reduce GDP. Net exports rise which increases GDP. D) reduces investment spending, consumption spending and net exports, all of which reduce GDP.
What does the inflation rate measure, and what is deflation?
What will be an ideal response?
If workers suddenly decide to value more their leisure time than before, this
A) shifts the labor supply curve to the left, resulting in a wage increase and less workers hired. B) shifts the labor supply curve to the right, resulting in a wage increase and less workers hired. C) shifts the labor supply curve to the left, resulting in a wage decrease and less workers hired. D) shifts the labor supply curve to the right, resulting in a wage increase and more workers hired.
Kurt decided to increase the number of stocks in his portfolio. In doing so, Kurt reduced
a. both the firm-specific risk and the market risk of his portfolio. b. the firm-specific risk, but not the market risk of his portfolio. c. the market risk, but not the firm-specific risk of his portfolio. d. neither the market risk nor the firm-specific risk of his portfolio.