The desire to keep assets in cash to take advantage of favorable changes in the value of non-cash assets is called the:
a. speculative demand for money.
b. wealth demand for money.
c. risk interest in money.
d. precautionary demand for money.
e. transactions demand for money.
a
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If a producer must pay the cost of his or her pollution because property rights have been assigned, then
A) pollution will be completely eliminated. B) the supply curve will shift rightward as the new costs are added. C) the supply curve will shift leftward as the new costs are added. D) consumers will now consume more of the good because the external costs are reduced. E) there is no longer any marginal benefit from the good or service being produced.
Suppose product price is fixed at $24; MR = MC at Q = 200; AFC = $6; AVC = $16 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at the current output; the firm is earning a profit of $400. e. Stay at the current output; the firm is losing $200.
The U.S. imposes substantial taxes on cigarettes but not on loose tobacco. When the tax on cigarettes went into effect, the demand for home cigarette rolling machines most likely:
A. increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to rise. B. increased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to fall. C. decreased, causing the price of cigarette rolling machines to fall and the quantity of machines purchased to fall. D. decreased, causing the price of cigarette rolling machines to rise and the quantity of machines purchased to fall.
Assume that pencils and pens are substitutes. If the price of pencils rises ceteris paribus, then we will see
A. A decrease in the demand for pens. B. A decrease in the supply of pens. C. An increase in the demand for pens. D. An increase in the supply of pens.