If the substitution effect of the real interest rate on saving is smaller than the income effect of the real interest rate on saving, then a rise in the real interest rate leads to a ________ in consumption and a ________ in saving, for someone who's a lender.
A. rise; rise
B. rise; fall
C. fall; rise
D. fall; fall
Answer: B
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The Molasses Act (1733)
a. aimed to decrease trade between the colonies and the French West Indies. b. was flaunted with impunity by the colonists. c. placed a high tariff on colonial imports of foreign sugar, molasses and rum. d. if enforced would have disrupted one of the major colonial trades. e. All of the above.
A profit-maximizing, monopolistically competitive restaurant serves 60 burgers a day at a total cost of $180 and earns a total profit of $180. In the long run, everything else equal, the
A. restaurant will charge more than $6 per burger. B. restaurant’s average total cost will rise and its total revenue will fall. C. restaurant will sell more burgers at a lower average profit per burger. D. All of the responses are correct.
Monopolistically competitive firms can earn profits in the long run by:
A. price discriminating. B. continually innovating to differentiate their product. C. further minimizing their costs. D. monopolistically competitive firms only earn zero profits in the long run.
Historical episodes are not valuable to economists
a. True b. False Indicate whether the statement is true or false