The concept of diminishing marginal benefits ________ for goods that you like a lot. Suppose you have a flashlight that takes three batteries to power it. If you buy the batteries one at a? time, for which purchase will diminishing benefits set? in?
A. When you buy the first battery.
B. When you buy the second battery.
C. When you buy the third battery.
D. When you buy the fourth battery.
D. When you buy the fourth battery.
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Pick the true statement
A) It is possible for economic profit to be greater than accounting profit. B) Accounting profit includes both the implicit and explicit costs of production. C) Accounting profit is always greater than economic profit. D) None of the above is a true statement.
If the interest rate increases from 5 percent to 7 percent, the present value of a future payment
A) rises. B) falls. C) is unaffected. D) might either rise or fall.
In the above figure, what is total profit at the profit-maximizing point?
A) $14 B) $56 C) $42 D) $70
If the reserve ratio is 10%, and banks do not hold excess reserves, when the Fed purchases $10 million of government bonds, bank reserves
A) increase by $10 million and the money supply could eventually increase by $10 million. B) decrease by $10 million and the money supply could eventually decrease by $100 million. C) increase by $10 million and the money supply could eventually increase by $100 million. D) decrease by $10 million and the money supply could eventually decrease by $10 million