Market equilibrium is the intersection of the demand curve and the social cost curve
a. True
b. False
Indicate whether the statement is true or false
False
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Sheila and Jim live in an island where they are the only two workers. Sheila can either catch 10 fish or gather 40 pounds of berries each day, and Jim can either catch 8 fish or gather 24 pounds of berries each day. Both of them work 200 days per year. At current world prices 1 fish trades for 3.5 pounds of berries. If they open up to trade and the citizens of the island consumed 1,200 fish per year, how many pounds of berries can they consume every year?
A. 9,200 pounds B. 12,800 pounds C. 8,000 pounds D. 9,400 pounds
What is the potential money multiplier if the reserve requirement is 4%?
a) 2.5 b) 4 c) 14 d) 25
Which of the following will shift the aggregate demand curve to the left?
A. Foreign economies fall into recession, reducing their demand for domestic exports. B. Consumers become optimistic about the future. C. The government increases spending on education. D. Income taxes are lowered.
Bob is the only carpet installer in a small isolated town. The above figure shows the demand curves of two distinct groups of customers-residential and business. Bob is likely to price discriminate because
A) elasticities differ across markets. B) the installation of carpets cannot be resold. C) Bob can probably identify which consumers belong to which segment. D) All of the above.