A price taker is a buyer or seller who:
A. cannot affect the market price.
B. takes the market price and chooses to increase or decrease it.
C. takes prices in the area and averages them together to set the price for his/her good.
D. can affect the market price, but only when collaborating with other buyers or sellers.
A. cannot affect the market price.
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Which of the following is not a component of the M2 money supply?
A) Cash in circulation B) Gold owned by the federal authorities C) Deposits in checking accounts D) Any issued traveler's checks E) All of the above.
Andrew's utility of wealth schedule is given in the above table. The table indicates that his marginal utility of wealth ________ as his wealth increases
A) diminishes B) is constant C) increases D) increases first and then diminishes
On the day of delivery
A) the spot price will equal the futures price. B) the spot price will be greater than the futures price by an amount equal to the current interest rate times the futures price. C) the futures price will be greater than the spot price by an amount equal to the current interest rate times the spot price. D) there is no necessary relation between the spot price and the futures price.
If the marginal physical product (MPP) of the last dollar spent on labor is only half as large as the MPP from the last dollar spent on capital, this firm should
A) increase its use of labor and employ less capital. B) employ more capital. C) increase its use of both labor and capital. D) maintain its current factor utilization pattern.