If you observed that the market price of a good rose, while the quantity exchanged fell, which of the following could have caused the change?
a. An increase in supply.
b. A decrease in supply
c. An increase in demand.
d. A decrease in demand.
b
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What is the difference between the average cost per unit for 5 units and the marginal cost of the 5th unit?
a. 196 b. 86 c. 40 d. 110
Ace has always been a top student, so it was no surprise he won a $1,500 scholarship from the company where he worked summers to help with college expenses. Ace decides to spend his scholarship money on a new Apple MacBook. How will GDP be affected by Ace's recent purchases?
A. Consumption will go up by $1,500, because a computer is a durable good. B. Investment will go up by $1,500, because a computer is a durable good. C. GDP will not be affected, since Ace acquired the computer with scholarship money. D. Consumption will go up by $1,500, because a computer is a nondurable good.
The group within the Federal Reserve System that determines the general course for the nation's money supply is the
a. Federal Monetary Oversight Committee b. Federal Advisory Council c. Board of Governors d. Department of Commerce e. Federal Open Market Committee
The supply of loanable funds curve is upward-sloping because a rise in the interest rate
a. decreases the opportunity cost of firms' investment spending b. stimulates the economy c. decreases the opportunity cost to households of consuming d. increases the opportunity cost to households of consuming e. increases the government's desire to run a budget deficit