The most anyone is willing to pay for another purse is $30. Currently the price of a purse is $40, and the cost of producing another purse is $50. The marginal benefit of a purse is
A) $50.
B) $40.
C) $30.
D) an amount not given in the answers above.
C
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Irving Fisher's view that velocity is fairly constant in the short run transforms the equation of exchange into the
A) Friedman's theory of income determination. B) quantity theory of money. C) Keynesian theory of income determination. D) monetary theory of income determination.
Total producer surplus is the area below the equilibrium price and above the supply curve
a. True b. False Indicate whether the statement is true or false
In 1933, net private domestic investment was a minus $6.0 billion. This means that:
a) gross private domestic investment exceeded depreciation by $6.0 billion. b) the economy was expanding in that year. c) the production of 1933's GDP used up more capital goods than were produced in that year. d) the economy produced no capital goods at all in 1933.
Which of the following describes the effect on the domestic market of tariffs imposed on imported wool blankets?
a. Fewer wool blankets will be sold overall. b. Prices for domestic wool blankets will fall. c. Sales will fall for domestic wool producers. d. Imported wool blanket sales will increase.