When deciding whether to buy a second car, the economic way of thinking indicates that the purchaser should compare
a. the benefits expected from two cars with the cost of both.
b. the additional benefits expected from a second car with the cost of the two cars.
c. the dollar cost of the two cars with the potential income that the cars will generate.
d. the additional benefits of the second car with the additional cost of the second car.
D
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Use the following given market-for-money diagrams to answer the next question.
The total demand for money is shown by
A. D1. B. D2. C. D3. D. S.
Briefly discuss the relationship between leakages and the size of the multiplier
What will be an ideal response?
All of the following are assumptions of the production possibilities curve EXCEPT
A) resources are fully employed. B) there is a fixed time period. C) there is a fixed level of technology. D) there is a fixed demand for the products.
In a price-taker market, profits are
a. the result of consumers being charged arbitrarily high prices. b. a reward for creating value. c. the result of barriers to entry into the market. d. a signal that fewer resources are needed in a market.