Suppose that there is an improvement in technology in the market for iPhones. Which of the following is TRUE?
A) Supply will increase and the market clearing price will fall.
B) Supply will increase and the market clearing price will rise.
C) Demand will increase and the market clearing price will rise.
D) Demand will increase and the market clearing price will fall.
A
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In the figure above, the marginal utility of the third crate of tomatoes for the person with total utility curve C is
A) 13 units of utility. B) 16 units of utility. C) 32 units of utility. D) 45 units of utility.
If a nation is going to achieve and sustain a high rate of economic growth, it must
a. prohibit low-wage foreign producers from supplying goods to the domestic market. b. have an abundant domestic supply of low cost energy resources. c. have a mechanism capable of attracting savings and channeling them into wealth-creating projects. d. impose regulations that will limit the intensity of competition among domestic firms.
When a nation is under-allocating resources to the production of a good, then the:
A. Marginal benefit is greater than the marginal cost of the good B. Marginal benefit is less than the marginal cost of the good C. Marginal cost of producing the good is decreasing D. Marginal benefit of producing the good is increasing
Which of the following is NOT a correct statement about the Federal Reserve banks?
A. They supervise member banks within the Federal Reserve System. B. They provide the economy with gold backed currency. C. They provide a system of check collection and clearing. D. They act as banker and fiscal agent for the U.S. government.