In the three-step method, how do you find market price?
a. at q* go directly up to the demand curve and then go left to the vertical axis
b. at q* go directly up to the supply curve and then go left to the vertical axis
c. at q* go directly up to the demand curve and then go right to the equilibrium point
d. at q* go directly up to the supply curve and then go right to the equilibrium point
a. at q* go directly up to the demand curve and then go left to the vertical axis
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When you chose to buy the second cup of coffee instead of the third bagel, which of the following is necessarily CORRECT?
A) The second coffee will give you higher marginal utility. B) The second coffee is cheaper than the third bagel. C) The marginal utility per dollar from the third bagel is less than the marginal utility per dollar from the second coffee. D) Both answers A and C are correct.
The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre. If the wage rate rises from $100 per day to $200 per day, the firm's demand for labor curve
A) shifts leftward. B) shifts rightward. C) does not shift at all, but the firm moves upward along the curve. D) None of the above because this change shifts the supply of labor curve.
In the long-run, an increase in the budget deficit and an expansionary monetary policy would:
A) increase the price level only. B) increase both the price level and real income. C) increase real income only. D) none of the above.
In which of the following assets are commercial banks in the United States NOT allowed to invest checkable deposits?
A) home mortgages B) corporate bonds C) municipal bonds D) U.S. Treasury bonds