When there is economy-wide equilibrium, there is a tendency for
A) total output to rise.
B) total output to fall.
C) total output to remain unchanged.
D) prices to fall.
E) prices to rise.
C
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Donuts and coffee are complements. When the price of a donut increases, the demand for coffee ________ and the cross elasticity of demand for coffee with respect to the price of a donut is ________
A) decreases; negative B) increases; negative C) increases; positive D) decreases; positive
Vault cash is:
A. a part of reserves and an asset of commercial banks. B. not reserves but is a liability of the central bank. C. equal to the total amount of reserves and is an asset of the central bank. D. not reserves but is an asset of central banks.
Answer the following statement(s) true (T) or false (F)
1. Diminishing marginal returns is basically the same concept as decreasing returns to scale.. 2. The unit isoquant represents all possible ways of producing one unit. 3. If the wage and rental rates are $10 and $50 per hour respectively and an additional worker could produce 100 units of output in an hour, then an extra unit of capital could produce 500 units of output in an hour. 4. If the marginal product of labor is currently 40 units per hour and the marginal product of capital is currently 20 units per hour, then workers must be getting paid twice as much as capital per hour. 5. If all inputs are variable in the long run, then there cannot be decreasing returns to scale. But if some inputs remain fixed in the long run, then decreasing returns to scale can occur.
Which of the following firms are in a monopolistically competitive market?
A) the many retail firms such as JCPenney, Sears, The Gap, and so on B) the sole local providers of electricity, such as Kansas Power and Light, or Pacific Gas and Electric C) the many farmers that grow wheat D) None of the above are in a monopolistically competitive market.