According to revealed preference a consumer that chooses to smoke cigarettes:
A. is minimizing their utility given the options available to them.
B. derives more happiness from smoking than the goods they could have purchased with that same money.
C. derives more utility from smoking than the goods they could have purchased with that same money.
D. is behaving irrationally.
Answer: C
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Suppose Kaylee withdraws $4,000 from her bank. If the reserve ratio is 25 percent, then this will lead to a decrease in M1 of
A) $1,000. B) $4,000. C) $8,000. D) $12,000.
The federal government
a. runs a deficit when tax revenues are greater than government purchases. b. runs a surplus when tax revenues are smaller than government purchases. c. runs a deficit when tax revenues are smaller than government outlays. d. runs a surplus when tax revenues are greater than government purchases. e. runs a surplus when tax revenues are smaller than transfer payments.
Which of the following is an example of a cash outflow from a financing activity?
A. Sale of an intangible asset B. Purchase of treasury shares C. Issuance of bonds D. Distribution of stock dividends
Which of the following statements about a monopolist is FALSE?
A. A pure monopolist is not the same as a perfect competitor. B. A pure monopolist is the sole supplier of one product, good, or service. C. The monopolist faces a demand curve for the entire market for that good. D. The monopolist faces the industry demand curve, which is upward sloping.