Which of the following is the best example of a positive question?
A. Should the government reduce inflation?
B. How should the government deal with the next recession?
C. Should government allow two large companies to merge?
D. How are price and quantity demanded related?
Answer: D
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An increase in wealth that doesn't affect labor supply would cause the IS curve to ________ and the FE line to ________
A) shift down and to the left; be unchanged B) shift down and to the left; shift left C) shift up and to the right; be unchanged D) shift up and to the right; shift left
Once a firm has selected a price for its product, quantity is decided by consumers and their demand curves.
Answer the following statement true (T) or false (F)
Goods and services produced by the government are sold at prices that are set to recover production costs
a. True b. False
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table below shows the reservation prices of the eight students enrolled in the class.StudentReservation Price($/Book)Q60R54S48T42U36V30W30X30 What will be Campus Books' economic profit if it must charge a single price to all of its customers?
A. $180 B. $120 C. $130 D. $128