A seller's reservation price is generally equal to:
A. the seller's marginal cost.
B. the market price.
C. the buyer's reservation price.
D. the seller's average cost.
Answer: A
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The equilibrium price and quantity of a good under perfect competition are determined:
A) by the intersection of the market demand and total revenue curves. B) by the intersection of the total revenue and total cost curves. C) by the intersection of the market demand and market supply curves. D) by the intersection of the market supply and total revenue curves.
Which of the following is a normative economic statement?
A) An increase in corporate income taxes will cause the unemployment rate to increase. B) The costs of medical care are increasing faster than the incomes of U.S. citizens. C) Teenage unemployment is over ten percent. D) Teenage unemployment is too high.
A shift to a more expansionary monetary policy will
a. increase the long-term growth rate of the economy. b. reduce the future rate of inflation. c. Stimulate output and employment almost immediately. d. Stimulate output and employment, but only after a time lag that is generally long and variable.
The consumption schedule shows the relationship of household consumption to the level of:
a. The marginal propensity to consume b. Disposable income c. Investment d. Saving