Which of the following would shift the demand curve for autos to the right?
a. A fall in the price of autos. b. A fall in the price of auto insurance.
c. A fall in consumers' incomes. d. A fall in the price of steel.
b
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When drawing a production possibilities frontier, all of the following are usually assumed except one. Which is the exception?
a. The quantity of resources is rapidly growing. b. Technology is fixed. c. Resources can be shifted between production of the two goods. d. The production possibilities frontier is drawn for a particular time period. e. Resources are fully and efficiently employed.
Where the income line intersects the consumption curve, saving
a. equals consumption b. equals income c. is less than zero d. is equal to zero e. is greater than zero
A firm's profit equals:
A. (P ? ATC) ÷ Q [(price minus average total cost) divided by the quantity sold]. B. (P ? ATC) × Q [(price minus average total cost) times the quantity sold]. C. P ? MC [price minus marginal cost]. D. P × Q [price times the quantity sold].
Alex wants to maximize his utility. At his current level of consumption, Alex's marginal utility from an additional cup of coffee is 15 utils, and his marginal utility from an additional can of soda is 11 utils. If the price of a cup of coffee is $3 and the price of a can of soda is $2, Alex should:
A. decrease his spending on both coffee and soda. B. reallocate his spending away from soda and towards coffee. C. not change his consumption of either coffee or soda. D. reallocate his spending away from coffee and towards soda.