The stronger that consumer demand is for a good or service, other things being equal,
a. the higher its price.
b. the lower its price.
c. the more stable its price.
d. the less stable its price.
a. the higher its price.
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Which of the following is the study of “what is” rather than “what ought to be”?
a. normative economics b. subjective economics c. positive economics d. the theory of the origin of humanity
Suppose a firm's total cost of production is $40,000 per week, the wage rate is $1,000 per week and the cost of capital is $2,000. Which of the following gives the equation for the firm's isocost line?
A. L = 20 - 0.5K B. K = 40 - 2L C. K = 2,000 + 1,000L D. K = 20 - 0.5L
A hypothetical bank accepts cash deposits from all its clients. The bank promises that all the funds deposited with it are absolutely secure and available to the depositors whenever they need them. In the given scenario, which of the following is true? a. The bank holds 100 percent reserves with itself. b. The bank holds 50 percent reserves with itself. c. The bank makes loans at steep
interest rates. d. The bank invests only in securities.
The Scarcity Principle applies to:
A. consumers primarily. B. firms primarily. C. everyone. D. poor people primarily.