In Poland's free market, Felix Siemienas is making a fortune in cold cuts. Prices are much higher than formerly. Siemienas says, "Yes, my prices are high. If nobody buys, I bring my prices down. That is the market rule." This "rule" best describes
a. the law of diminishing returns.
b. opportunity cost.
c. the law of increasing costs.
d. the law of demand.
d
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Fiona shares an office with her ex-husband. Her share of the rent and utilities is $625 per month. She is considering moving to a home office which she will not have to share with anyone
The home office will not cost her anything as far as extra rent or utilities. Recently, you ran into Fiona at the gym and she tells you that she has moved into her home office. Fiona is as rational as any other person. As an economics major, you rightly conclude that A) Fiona did not have a choice; her ex-husband was a jerk. B) Fiona figures that the benefit of having her own office (as opposed to sharing) is zero, since she is no longer paying rent and utilities. C) Fiona figures that the additional benefit of having her own office (as opposed to sharing) is at least $625. D) The cost of having one's own space outweighs the benefits.
Studies show that __________ households tend to save more of their income than others, and also show that ____________ households save more out of tax cuts than others do.
A. richer; poorer B. richer; richer C. poorer; richer D. poorer; poorer
In which of the following conditions is the inflation rate likely to fall and the unemployment rate likely to rise?
A. hyperinflation B. stagflation C. recession D. boom
Refer to the information provided in Table 24.1 below to answer the question(s) that follow.Table 24.1
Refer to Table 24.1. At an output level of $1,200 billion, the level of aggregate expenditure is
A. $1,000 billion. B. $1,200 billion. C. $1,300 billion. D. $1,400 billion.