What do the income effect, the substitution effect, and diminishing marginal utility have in common?
A. All are required to explain the utility-maximizing position of a consumer.
B. They are all empirically measurable.
C. They all help explain the upsloping supply curve.
D. They all help explain the downsloping demand curve.
Answer: D
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In the foreign exchange market, the supply curve of dollars is
A) vertical. B) downward sloping. C) identical to the demand curve for dollars. D) upward sloping. E) horizontal.
Transfer payments are:
a) excluded when calculating GDP because they only reflect inflation. b) excluded when calculating GDP because they do not reflect current production. c) included when calculating GDP because they are a category of investment spending. d) included when calculating GDP because they increase the spending of recipients.
SW also ranked ___ among big airlines in baggage handling.
Fill in the blank(s) with the appropriate word(s).
A monopolist will
A. always charge a price higher than average cost. B. always charge a price higher than marginal cost. C. always produce a level of output at which marginal revenue equals marginal cost. D. both b and c E. all of the above