Melanie decided to sleep in today rather than attend her 9 a.m. economics class. According to economic analysis, her choice was
a. irrational, because economic analysis suggests you should always attend classes that you have already paid for.
b. irrational, because oversleeping is not in Melanie's self-interest.
c. rational if Melanie has not missed any other classes.
d. rational if Melanie values sleep more highly than the benefit she expects to receive from attending the class.
D
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Which of the following statements is TRUE for a monopolistically competitive firm in the long run?
A) P = ATC > MR B) MC > P > ATC C) P > MC > ATC D) P = MC = MR
Gross domestic product measures the:
a. wholesale value of all goods and services produced by U.S. owned corporations. b. market value of all final goods and services produced during a year by resources located in the United States. c. initial production value of foreign and Untied States owned corporations who pay taxes in the United States. d. aggregate consumer purchases of goods and services sold in a year in the United States.
Which of the following helps to explain why the inflation fallacy is a fallacy?
a. Increases in the price level can be created by increases in money demand. b. Nominal incomes tend to rise at the same time that the price level is rising. c. As the price level rises, the value of a dollar falls. d. Inflation only changes nominal variables.
If the marginal propensity to consume, MPC, is less than 1 and a household's disposable income increases by $2,000, the household's consumption will
What will be an ideal response?