Refer to Table 4.1. Mike's preferences are consistent with the More-Is-Better Principle because:
A. the two goods are perfect substitutes.
B. there are no empty cells.
C. in each column, the choices at the top are ranked lower than the choices at the bottom.
D. in each column, the choices at the top are ranked higher than the choices at the bottom.
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Which of the following is true regarding a demand curve?
i. The demand curve is also the marginal benefit curve. ii. The demand curve shows the dollars' worth of other goods that people are willing to forgo to consume another unit of the good. iii. The demand curve shows the maximum price that people are willing to pay for another unit of a good. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) i only
The ________ often workers get paid, other things constant, the lower their average money balances, so the ________ active the money supply and the greater its velocity
a. less; less b. more; less c. less; more d. more; more
Figure 4-12
Refer to . The exhibit illustrates the impact of granting a subsidy on a particular good. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
The subsidy has been statutorily (legally) paid to buyers.
b.
The subsidy results in an increase in the selling price of the good.
c.
Sellers will receive a larger proportion of the benefit from this subsidy than buyers.
d.
All of the above are true.
If the perfectly competitive firm withholds some of its output from the market,
A. in many cases it can drive the market price up. B. in many cases it can drive the market price down. C. it will have no effect on market price whatsoever. D. it is impossible to generalize what the long-run effect will be.