For a given money demand curve, an ________ in the money supply drives down the interest rate, and a ________ in the money supply drives up the interest rate
a. decrease; increase
b. decrease; decrease
c. increase; decrease
d. increase; increase
c
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Higher protection raises the overall level of employment
Indicate whether the statement is true or false
If a consumer allocates income between goods A and B, total utility is maximized when
a. the marginal utility of A = the marginal utility of B b. the marginal utility of A = the marginal utility of B = 0 c. the price of A = price of B d. marginal utility of A/price of A = marginal utility of B/price of B = 0 e. marginal utility of A/price of A = marginal utility of B/price of B
Bobby's neighbor is growing a tree that is blocking Bobby's ocean view. Bobby is considering taking his neighbor to court. This is most likely an example of a:
A. negative externality. B. public good. C. free rider. D. positive externality.
There is a futures contract for the purchase of 1,000 bushels of corn at $3.00 per bushel. At the end of the day when the market price of corn falls to $2.50:
A. nothing happened since no funds are transferred until the settlement date. B. nothing happens since marked to market adjustments only occur if the market price rises above the contract price. C. the buyer (long position) needs to transfer $500 to the seller (short position). D. the seller (long position) needs to transfer $500 to the buyer (short position).