Which of the following factors best explains why consumers might prefer to go to a restaurant that was similar to another restaurant in terms of décor and food choices but had fewer customers?
a. the presence of network externalities
b. the idea that some people receive utility from goods they believe are popular
c. income and substitution effects
d. switching costs
b. the idea that some people receive utility from goods they believe are popular
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Which of the following is likely to shift the credit demand curve of an automobile manufacturer to the right, assuming all else equal?
A) An increase in the real interest rate B) A plan to increase production and expand to newer markets C) A plan to decrease production and exit from existing markets D) A decrease in the real interest rate
The LM curve slopes upward because
a. as income rises, savings rise, increasing output. b. as interest rates rise, the money supply rises, increasing output. c. as interest rates rise, planned investment must fall, increasing output. d. as income increases, money demand rises, which increases interest rates. e. none of the above.
If the wage is fixed at $8 per hour, the total labor cost of employing four workers for 8 hours is
a. $8 b. $32 c. $64 d. $256 e. $2,048
Inflation-targeting means that the central bank is legally required to focus only on keeping inflation high
a. True b. False Indicate whether the statement is true or false