If the quality of a good improves while its price remains the same, then the value of a dollar
a. rises and the cost of living increases.
b. rises and the cost of living decreases.
c. falls and the cost of living increases.
d. falls and the cost of living decreases.
Answer: b. rises and the cost of living decreases.
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Which of the following is a determinant of supply?
A. Number of buyers. B. The prices of the factors of production. C. Consumers' income. D. Consumer tastes or preferences.
Does expansionary fiscal policy directly increase the money supply? Isn't it true that the president and Congress fight recessions by spending more money?
What will be an ideal response?
You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 120 ? 6Q, where Q = Q1 + Q2. The marginal costs associated with producing in the two plants are MC1 = 2Q1 and MC2 = 4Q2. What price should be charged in order to maximize revenues?
A. 24 B. 60 C. 2 D. 6
For an employer biased against African Americans, the discrimination coefficient d:
A. will decrease if the employer becomes more prejudiced against African Americans. B. must equal the actual ratio of African-American to white wage rates. C. measures the amount an employer is willing to pay to hire a white over hiring an African- American worker. D. varies inversely with the actual African-American-white wage ratio.