According to the law of supply, other things equal, when the price of a good or service rises, the quantity supplied increases, but supply does not
a. True
b. False
Indicate whether the statement is true or false
True
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The demand curve for a Giffen good slopes upward
Indicate whether the statement is true or false
Which of the following describes a situation in which every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it?
A) profit maximization B) productive efficiency C) allocative efficiency D) marginal efficiency
A change in which of the following variables will cause a shift of the IS curve in the current period?
A) the current interest rate B) current output C) current taxes D) all of the above E) none of the above
Which of the following situations represents a trade-off?
A) Each additional hour of leisure reduces Billy's consumption of goods by $15. B) Bob ate a slice of cranberry pie with one scoop of vanilla ice cream. C) Jill can afford either a sports car or a 4-year college tuition. D) A and C