The law of demand states that, ceteris paribus, price and quantity demanded are:
a. directly related. b. inversely related.
c. uniformly related. d. horizontally related.
b
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Refer to Table 18.1. The opportunity cost of a hat in Russia is
A) 1/3 of a glove. B) 1/2 of a glove. C) 2 gloves. D) 3 gloves.
Suppose the production of DVD players can be represented by the following production function: q = L0.4K0.4. Which of the following statements is TRUE?
A) The production function has decreasing returns to scale. B) The production function has increasing returns to scale. C) The production function has constant returns to scale. D) Returns to scale vary with the level of output.
The private information revealed during screening typically refers to information:
A. that is personal. B. that is embarrassing. C. that is not public. D. that individuals generally do not want anyone to find out.
If people decide to hold less money as currency and more as checking deposits, this will most likely cause
a. a decrease in bank reserves. b. a decrease in required reserves. c. an increase in the discount rate. d. an increase in the money supply.