The principle stating that, for virtually all goods and services, there is a negative relationship between price and quantity demanded, all other things unchanged, is the law of:
A) supply.
B) demand.
C) scarcity.
D) increasing opportunity costs.
Ans: B) demand
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The above table has the total revenue and total cost schedule for Omar, a perfectly competitive grower of rutabagas. When Omar produces 2 bushels of rutabagas, his total profit equals
A) $0. B) $20. C) $28. D) -$8. E) $48.
One similarity between the policy recommendations of the new classical and monetarist models is that
a. both believe that monetary policy has much stronger employment effects than does fiscal policy. b. are policy activists. c. both believe in the natural rate of output. d. both believe that discretion is preferable to rules. e. none of the above.
Increased demand for U.S. products by foreign residents will lead to a depreciation of the U.S. dollar relative to foreign currencies
a. True b. False Indicate whether the statement is true or false
Explain the difference between the short run and the long run.
What will be an ideal response?