The law of supply describes the:
A. inverse relationship between income and quantity supplied.
B. direct relationship between income and quantity supplied.
C. inverse relationship between price and quantity supplied.
D. direct relationship between price and quantity supplied.
Answer: D
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George spends all his income on sandwiches and juice. George's utility is maximized when he is consuming sandwiches and juice so that the
A) marginal utility from sandwiches equals the marginal utility from juice. B) total utility from sandwiches equals the total utility from juice. C) marginal utility per dollar spent on sandwiches equals the marginal utility per dollar spent on juice. D) marginal utility from sandwiches is at a maximum.
During the financial crisis of 2007–2009, both fiscal and monetary policy turned more expansionary.
Answer the following statement true (T) or false (F)
Producers' surplus is
A) the difference between the price a buyer pays for a good and the highest price he would have paid for the good. B) the difference between the price a seller receives for a good and the minimum price for which he would have sold the good. C) the difference between the price a seller receives for a good and the price a buyer pays for the good. D) equal to price times quantity sold. E) equal to the seller's minimum price and the buyer's maximum price.
In the long run, sustained inflation is due to
A. a one-time increase in money growth. B. a continuous increase in aggregate demand. C. a continuous increase in the money growth rate. D. the rising price of oil.