Microeconomics is defined as that part of economic analysis that
A) studies the behavior of the economy as a whole.
B) includes the problems of inflation and unemployment.
C) studies individual decision making by households and firms.
D) concerns aggregate production and consumption.
C
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When marginal cost is increasing, average total cost must be increasing
a. True b. False Indicate whether the statement is true or false
If an increase in the price of good A does not change its quantity demanded, then the price elasticity of demand for good A is said to be: a. perfectly elastic
b. perfectly inelastic. c. elastic. d. inelastic.
Under a communist system,
A. consumer decisions are not influenced by prices. B. resources are owned and controlled by the government. C. individual freedom is maximized. D. the market guides resources, but the state dictates what should be produced.
Suppose banks decide to hold fewer excess reserves relative to deposits. Other things the same, this action will cause the
a. money supply to fall. To reduce the impact of this the Fed could sell Treasury bonds. b. money supply to fall. To reduce the impact of this the Fed could buy Treasury bonds. c. money supply to rise. To reduce the impact of this the Fed could sell Treasury bonds. d. money supply to rise. To reduce the impact of this the Fed could buy Treasury bonds.