Sefronia and Bella share an apartment and they are deciding whether or not to purchase a weekly housecleaning service. The value of the service to each of them is $50 and it costs $80 to hire a housecleaner. Should they hire a housecleaner?
A) No, because each will wait for the other to hire the housecleaner.
B) Yes, but only if a housecleaner will accept $50 so that each can take turns to pay the housecleaner.
C) No, because it will be difficult for them to agree on which housecleaning service to use.
D) Yes, if each contributes $50, then each stands to gain a consumer surplus.
D
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Marginal revenue for a perfectly competitive firm equals: a. the addition to total cost from producing one more unit of output. b. average revenue at all levels of output
c. marginal cost at all levels of output. d. average total cost at all levels of output.
When the Fed raises the margin requirement on stock purchases, the price of stocks generally rises
Indicate whether the statement is true or false
Which of the following is the formula for velocity?
a. Velocity = nominal GDP/real GDP b. Velocity = real GDP/M c. Velocity = (P × Y)/(M × V) d. Velocity = nominal GDP/M
Ceteris paribus, which of the following will occur if the Fed buys bonds through open-market operations?
A. The aggregate supply curve should shift leftward. B. The aggregate supply curve should shift rightward. C. The aggregate demand curve should shift leftward. D. The aggregate demand curve should shift rightward.