The inverse relationship between quantity demanded and price of a good or service can be explained, in part, by
A) a shift in the demand curve.
B) diminishing marginal utility only.
C) diminishing marginal utility and the rule of equal marginal utilities per dollar.
D) the real income effect.
Answer: C
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Compared to corporations, businesses that are proprietorships
A) are far more numerous. B) account for a larger percentage of the economy's total revenue each year. C) can raise capital more cheaply. D) All of the above are correct answers.
Refer to the accompanying figure. If the price of this good is initially $3, and price falls by a few cents, then what will happen to total expenditure on this good?
A. Total expenditure will rise. B. Total expenditure will fall to 0. C. Total expenditure will not change. D. Total expenditure will fall.
Refer to the graph shown. The firm's profit-maximizing price is:
A. g. B. h. C. e. D. f.
Assume that the actual inflation rate is 3 percent, the target inflation rate is 2.5 percent, and that the percentage difference between actual and potential real GDP is 1 percent
According to the Taylor rule, the federal funds rate target should be A) 3.25 percent. B) 5.75 percent. C) 6.25 percent. D) 5.50 percent.