Which of the following measures is the best measure of money as a medium of exchange?
A) M1
B) M2
C) M3
D) None of the above
A
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"Price discrimination allows a monopoly to increase its economic profit by capturing part of the consumer surplus and turning it into economic profit
" Is the previous statement correct or incorrect? If the statement is correct, why is it important in understanding firms' behaviors? If it is incorrect, why is it incorrect?
What is the purpose of producer goods?
a. They fulfill the basic needs of consumers. b. They increase the future production capacities of firms. c. They enable consumers to make something. d. They provide food and lodging to employees of firms.
Answer the following statements true (T) or false (F)
1. A parallel shift in a budget line is caused by changes in a consumer's level of satisfaction. 2. A change in the relative prices for two goods can be shown as a parallel shift in a consumer's budget line. 3. Indifference curves are convex to the origin due to diminishing marginal rates of substitution. 4. Indifference curves and budget lines can be used to derive an individual's demand curve for a product.
The long-run aggregate supply analysis assumes that:
A. Input prices are fixed while product prices are variable B. Input prices are variable while product prices are fixed C. Both input and product prices are variable D. Both input and product prices are fixed