After downing three glasses of lemonade on a hot summer afternoon, Todd says, "You would have to pay me to drink another glass!" This statement best illustrates
a. the law of demand.
b. the substitutability among goods.
c. the law of diminishing marginal utility.
d. that chocolate candy bars are an inferior good.
C
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When Major League Baseball players were awarded the right of free agency, no player had to give up their own free agency in order for someone else to get it, and no one could be excluded from free agency
These two characteristics of free agency demonstrate that it meets the criteria of a A) pure public good. B) club good. C) common pool resource. D) pure private good.
In the economy of Brightland, the commercial banks have deposits of $600 billion. Their reserves are $60 billion. All reserves are in deposits with the Central Bank and the commercial banks hold no excess reserves
There is $120 billion in Central Bank notes outside the banks, and there are no coins. a) What is the economy's monetary base? b) What is the quantity of money in the economy? c) Calculate the money multiplier. d) Suppose the Central Bank of Brightland undertakes an open market purchase of securities of so that the monetary base increases by $5 billion. By how much will the quantity of money change?
If there is a decrease in world taxes ________
A) domestic investment would fall B) net exports would increase C) domestic interest rates would go up D) all of the above E) none of the above
The joining of a firm with another to which it sells an output or from which it buys an input is known as
A) a conglomerate merger. B) a horizontal merger. C) a vertical merger. D) economies to scale.