Shadow prices:
A. affect decisions just as money prices do.
B. are illegal but still affect decisions.
C. exist only when money prices are paid in the market.
D. are not binding and so do not affect decisions.
Answer: A
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A decrease in the interest rate will_____.
a. increase the quantity of money supplied in the economy b. decrease the quantity of money supplied in the economy c. have no effect on the quantity of money supplied in the economy d. increase the quantity supplied of money at an increasing rate
Refer to the above figure. Production at Point F
A) is not attainable given the underlying assumptions of the production possibilities curve (PPC). B) would not be desirable. C) can only be attained by giving up Point E. D) can be attained only if a society desired more goods and services.
The determinants of price elasticity of demand include:
A. availability of substitutes, cost relative to benefit, and scope of market. B. degree of necessity, cost relative to income, scope of market, and adjustment time. C. availability of complements, cost relative to income, and scope of market. D. cost relative to income, scope of demand, and adjustment time.
In an auction where the bidders values are $740, $700, $660, $650, $400, $325 and $300, the highest three bidders decide to form a bid-rigging cartel. What would the winning bid be in this auction?
a. $741 b. $701 c. $651 d. $631