Pure rent is the return to any factor of production that is in fixed supply.
Answer the following statement true (T) or false (F)
True
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Apple, the consumer electronics giant, on Tuesday rolled out new versions of its popular iPad tablet. Suppose when the price of an iPad decreases by 20 percent, the number of songs downloaded on iTunes increases by 30 percent
Based on this information iTunes are A) a normal good. B) an inferior good. C) substitutes for iPads. D) complements to iPads.
In the Mundell-Fleming model with a floating exchange rate and perfect capital mobility, an increase in the money supply does all of the following EXCEPT:
a. increase interest rates. b. increase income. c. increase the IS curve. d. increase inflation.
Cartels are thought to be inherently unstable because: a. the costs of enforcing cartel agreements are very low
b. each cartel member can privately profit from increasing production beyond agreed-upon levels. c. customers force cartel members to increase production and reduce prices. d. cartel agreements are legally binding and can be upheld in court.
When the Fed sells government securities
A. reserves decrease, leading to a increase in the money supply by an amount more than the sale of the government securities. B. reserves increase, leading to a increase in the money supply by an amount more than the sale of the government securities. C. reserves decrease, leading to a decrease in the money supply by an amount more than the sale of the government securities. D. reserves increase, leading to a decrease in the money supply by an amount more than the sale of the government securities.