Suppose that new demands greatly reduce the proved reserves of titanium to unexpectedly low levels, and it appears that the new demands will continue. If the market price is unregulated, we should expect that the price will
a. rise sharply, calling forth added exploration and more effective (and more costly) recovery methods, resulting in additional new supplies of titanium.
b. rise sharply, calling forth new ways for manufacturers to conserve titanium and to find substitutes for it.
c. over time, bring the quantity supplied of titanium into balance with the quantity demanded.
d. do all of the above.
D
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Suppose George withdraws $60,000 from his bank. If the reserve ratio is 25 percent, then this transaction will lead to a decrease of ________ in checking account balances
A) $15,000 B) $45,000 C) $90,000 D) $180,000
Are we really rational consumers? If so, how do you explain the fact that every Thanksgiving many of us eat until we get sick! The answer must be that
a. the negative utility associated with being sick is greater than the positive utility of getting sick b. at the time of the eating, the utility of the turkey and stuffing minus the utility of the anticipated after-eating discomfort is still positive c. the utility of the turkey and stuffing at the time of eating minus the utility of the after-eating discomfort felt after the meal was eaten is still negative d. the total utility of eating the meal far outweighs the marginal utility of the discomfort felt after the meal e. the marginal utility of eating the meal far outweighs the total utility of the discomfort felt after the meal
If a cut in prices decreases total revenue in the short run, what will it do to total revenue in the long run? a. It will decrease total revenue in the long run
b. It will increase total revenue in the long run. c. It will leave total revenue unchanged in the long run. d. Any of the above results are possible in the long run.
A student figured out that the HHI for an industry was 15,000. What is the proper conclusion?
A. The market is close to perfectly competitive or monopolistically competitive. B. There is free entry in the market. C. The student made some computational errors. D. The market is monopolistic.