You graduate from law school and can now begin charging clients fees for your time. What impact will this have on your demand for money?
A. Your increased income will likely cause your demand for money to increase
B. Your opportunity cost of making trips to the bank will decrease
C. Your demand for money will not be affected
D. Your increased income will likely cause your demand for money to decrease
Answer: A
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When the economy experiences a bust, the government knows exactly which policies will spur an economic recovery.
Answer the following statement true (T) or false (F)
In a simple majority vote, the losses to the losers are greater than the gains to the winners. It follows that the
A) outcome of the vote is efficient. B) outcome of the vote is inefficient. C) outcome of the vote will be nullified (most likely by the Courts). D) vote has generated net benefits. E) none of the above
The father of modern economics who wrote The Wealth of Nations is:
A. Karl Marx B. John Maynard Keynes C. Adam Smith D. Thorstein Veblen
The principle that a firm should produce up to the point where the marginal revenue from the sale of an extra unit of output is equal to the marginal cost of producing it is known as the:
A. output-maximizing rule. B. profit-maximizing rule. C. shut-down rule. D. break-even rule.