An increase in quantity demanded is caused by
A. a decrease in the price of the good.
B. a decrease in the price of a complement.
C. an increase in income.
D. a change in expectations about price in the future.
Answer: A
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Which of the following correctly identifies a method to restore an economy to full employment, if it is operating below full employment due to a decrease in net exports?
A) Reduce the interest rate. B) Increase the real exchange rate. C) Reduce the investment in the economy. D) Reduce the demand for goods and services in the economy.
Rich people who have more money than they know how to spend
A) no longer act under scarcity. B) no longer need to economize. C) no longer have to choose to advance one project over another. D) will still face a scarcity of their time.
The federal agency that ensures that potential security purchasers are well informed is the
A) FCC. B) FTC. C) NRC. D) SEC.
Since the marginal product of labor equals the change in the quantity of output divided by the change in the quantity of labor, it stands to reason that:
a. a firm would never operate in the range where marginal product is negative. b. a firm would never operate in the range where marginal product is decreasing. c. marginal product will continually increase as the firm produces more. d. there is no predictable relationship between marginal revenue and marginal cost.