Which of the following is most consistent with the basic postulate of economics: changes in incentives exert a predictable impact on human behavior?
a. Farmers produce fewer bushels of wheat in response to an increase in the price of wheat.
b. People will buy more milk at a price of $3 per gallon than at $2 per gallon.
c. People will buy less gas if the price of gas increases by $0.50 per gallon.
d. People will consume more beef if the price increases from $1 to $2 per pound.
c. People will buy less gas if the price of gas increases by $0.50 per gallon.
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The actions by the Fed that would increase the money supply is
During the colonial period, the U.S. and other countries relied on "privateers.". Which of the following most accurately describes privateers?
a. Privateers were also known as pirates. b. Privateers were citizens who owned ships that attacked vessels from rival nations. c. Privateers were groups of convicts who stole from American sailing vessels. d. Privateers were a formal group part of the American Navy.
The money ____ equals 1 divided by the reserve requirement. The larger the reserve requirement, the ____ the money multiplier
a. supply; larger b. multiplier; larger c. supply; smaller d. multiplier; smaller
Dan owns an autographed copy of a Brittany Spears CD that he values at $100. If he sells the CD at the garage sale he's planning to hold in a few weeks, it will be sold to a buyer with a reservation price of $175. If he sells it on eBay, it will be sold to a buyer with a reservation price of $500. eBay will charge Dan $50 to auction the CD, which just covers eBay's opportunity cost of running the auction. Relative to selling the CD at his garage sale, auctioning the CD on eBay will lead:
A. total economic surplus to increase by $100. B. total economic surplus to increase by $500. C. to no change in total economic surplus. D. total economic surplus to increase by $275.