Suppose households unexpectedly decrease consumption. Which of the following will occur as a result of this unexpected reduction in consumption?
A) an increase in stock prices
B) a reduction in stock prices
C) no change in stock prices
D) an ambiguous effect on stock prices
D
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City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve
The lowest wage rate at which City-Mart can hire 40 hours of labor per day is A) $8 per hour. B) $12 per hour. C) $4 per hour. D) $9 per hour.
Refer to Figure 10-5. The consumer can afford consumption bundles
A) r, s, t, and u. B) r, s, v, and u. C) s, v, t, and u. D) s, v, and u only.
Keynes called the money people hold in order to pay unforeseen or unexpected expenses the:
A. transactions demand for holding money. B. precautionary demand for holding money. C. speculative demand for holding money. D. store of value demand for holding money.
When DVDs and hamburgers were the same price, Mavis consumed 3 hamburgers and 5 DVDs, and Mavis received 10 utils from the last hamburger and 15 utils from the last DVD consumed. What should be Mavis' consumption strategy?
A) consume more DVDs and fewer burgers B) consume more burgers and fewer DVDs C) consume more of both items D) consume less of both items