Many tout that the Internet has lowered consumers' search costs. If this is true, ceteris parabis, the consumer reservation price should:
A. remain the same.
B. be higher.
C. be lower.
D. There is insufficient information to determine the impact of lower search costs on reservation prices.
Answer: D
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Which of the following affects the magnitude of the multiplier?
i. marginal propensity to consume ii. marginal propensity to invest iii. marginal tax rate A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Explain why a monopoly or a perfectly competitive firm does not consider a rival firm's behavior, but an oligopoly and a monopolistically competitive firm do
What will be an ideal response?
Which of the following will shift the investment demand curve rightward?
a. Higher interest rates b. Gloomy sales expectations c. A cut in corporate taxes that raises after-tax profits d. A decrease in the marginal propensity to consume e. An increase in aggregate income
The production possibilities curve for the nation of Economania shifts to the right. This could have been caused by:
a. a decrease in Economania's capital stock. b. a decrease in the Economania's labor supply. c. high unemployment in Economania the previous time period. d. Economania producing all consumer goods in the previous period. e. technological innovation in the production of Economania goods.