Refer to the graph. Other things equal, an increase in the price of a complementary resource would cause a:





A.  move from a to b on D 1 .

B.  shift from D 2 to D 3 .

C.  shift from D 3 to D 2 .

D.  move from b to a on D 1


C.  shift from D 3 to D 2 .

Economics

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When a central bank targets inflation, its inflation targets are usually specified as

A) a specific inflation rate target, for example, 1 percent. B) the short-term interest rate minus 2 percent. C) a point on the short-run Phillips curve. D) a range for the inflation rate. E) deviations from the inflation rate.

Economics

If the federal budget has an actual budget surplus of $75 billion, but a cyclically adjusted budget surplus of $50 billion, then the economy must be above potential real GDP

Indicate whether the statement is true or false

Economics

Suppose Island Bikes, a profit-maximizing firm, is the only bike rental company in a small resort town. The marginal cost to Island Bikes of renting out a bike is $3, and Island Bikes has no fixed costs. Each day Island Bikes has six potential customers, whose reservations prices are listed in the table.  CustomerReservation Price($/Rental)A22B16C12D8E6F4If Island Bikes charges a single price to all of its customers, then what will be its daily economic profit?

A. $33 B. $27 C. $36 D. $26

Economics

What is utility and what are its characteristics?

What will be an ideal response?

Economics