The accompanying table below shows the relationship between the number of times you get your car washed each month and your total monthly benefit from car washes. Each car wash costs $15. Number of Car Washes Per MonthTotal Monthly Benefit from Car Washes0$01$202$363$484$565$60 What is the marginal cost of the 5th car wash each month?
A. $15
B. $12
C. $14
D. $4
Answer: A
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If the Federal Reserve purchases newly issued government bonds, the government is said to be
A) borrowing from the public. B) monetizing the deficit. C) borrowing from itself. D) fiscalizing the deficit.
Most of the Fed's liabilities are in the form of: a. Federal Reserve notes. b. checkable deposits
c. U.S. Treasury deposits. d. loans to member banks. e. certificates of deposit.
Which of the following is a characteristic of a real option?
a. The call option on a stock exercised if some average of the prices of its components passes a critical level. b. The right to postpone construction on the basis of net present value calculation. c. The put option on a stock that need to be paid for (at a predetermined price) if they are actually exercised. d. The right to sell an option at the strike price.
Suppose that iPhones are normal goods. If the income of iPhone users decreases, you predict that in the market for iPhones
A. both equilibrium price and quantity will increase. B. both equilibrium price and quantity will fall. C. equilibrium price will increase and quantity will decrease. D. equilibrium price will fall but quantity will increase.