The real value of money ________ as the price level falls.
A. remains the same
B. decreases
C. increases
D. None of these
Answer: C
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Suppose a lottery ticket costs $1 and the probability that a holder will win nothing is 99%. What must the jackpot be for this to be a fair bet?
a. 10 b. 100 c. 1,000 d. 10,000
If an oligopolistic manufacturer believes that he faces a kinked demand curve for his product, he thinks his competitors will ____ if he lowers his price and ____ if he raises his price
a. lower their prices; raise their prices. b. lower their prices; not raise their prices c. not lower their prices; raise their prices d. not lower their prices; not raise their prices
Economists use the terms resource and input as synonyms
Indicate whether the statement is true or false
Let MP = marginal product, P = output price, and W = wage, then the equation that represents a situation where a competitive firm should lay off some workers to maximize profits is
A) P × MP > W. B) P × MP < W. C) MP × W = P. D) P × MP = W.