The long-run supply curve is horizontal in a(n)
a. increasing-cost industry
b. constant-cost industry
c. decreasing-cost industry
d. labor-intensive industry
e. capital-intensive industry
B
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The Invisible Hand Principle suggests that
a. market prices direct individuals to produce more goods. b. individuals pursuing their own interests detract from the economic well-being of society. c. there should be stronger governmental initiatives to ensure cooperation for the betterment of society. d. market forces tend to channel the actions of self-interested individuals into activities that promote the general betterment of society.
Your bike is worth $100 and if you park it outside at school there is a 25% chance that it will be stolen. Your utility function for money is U = (M)2. Assume throughout that the bike value and money are interchangeable since you could sell the bike instantly at its value if necessary. What is the maximum you would pay security to check in your bike?
What will be an ideal response?
Given that income is $750 and PX = $32 and PY = $8, what is the market rate of substitution between goods X and Y?
A. -3 B. -4 C. -0.75 D. -25
The Fed's mistakes of the early 1930s were compounded by its decision to
A) raise reserve requirements in 1936-1937. B) lower reserve requirements in 1936-1937. C) raise the monetary base in 1936-1937. D) lower the monetary base in 1936-1937.