Since producers must be compensated for the rising opportunity cost that accompanies increases in output,
a. the law of demand applies to most markets
b. supply curves usually slope downward
c. demand curves usually slope downward
d. supply curves usually slope upward
e. technical inefficiency would not exist in the long run
D
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Assume that the price elasticity of demand for a commodity is 0.20 . A 10 percent increase in the price of the commodity will be followed by a:
a. 20 percent increase in the quantity demanded. b. 2 percent decrease in the quantity demanded. c. 20 percent decrease in the quantity demanded. d. 0.2 percent decrease in the quantity demanded. e. 2 percent increase in the quantity demanded.
There is no correlation between more years of schooling and increased earnings.
A. True B. False C. Uncertain
According to economic reasoning, you should offer one hour of volunteer service per week when
A) the additional benefits of doing so are greater than the additional costs. B) the additional costs of doing so are the same as the additional benefits. C) the additional costs of doing so are greater than the additional benefits. D) the total benefits of doing so are less than the total costs.
When a member bank borrows reserves from the Fed,
A) it pays an interest rate called the discount rate. B) it pays no interest rate but is required to repay the loan within the stipulated period. C) it pays an interest rate equivalent to the coupon rate on long-term government bonds. D) it pays an interest rate equal to the federal funds in the reserves market.