Which of the following would be most likely to increase transaction costs?
a. A new mall opens bringing together area merchants at one location.
b. A city ordinance bans large superstores in order to protect small, local businesses.
c. A canal is constructed, allowing ships to reduce travel time by 50 percent.
d. A website quickly connects new students to people who are seeking roommates.
b. A city ordinance bans large superstores in order to protect small, local businesses.
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If the marginal net utility of beer is a positive number, the consumer should buy more beer in order to maximize utility.
Answer the following statement true (T) or false (F)
Disposable income represents ________
A) the income received by firms, e.g. corporations B) an increase in GDP C) a decrease in GDP D) the after-tax income received by the household
If aggregate supply rises sharply so that a recession occurs, then the prescription is for expansionary fiscal policy
Select whether the statement is true or false. A. True B. False
In competitive markets,
a. firms produce identical products. b. buyers can influence the market price more easily than sellers. c. markets are more likely to be in equilibrium. d. sellers are price setters.