Wheat is produced in a perfectly competitive market. Market demand for wheat increases. This will cause the individual wheat farmer's marginal revenue to ________ and their profit-maximizing level of output to ________.
A. increase; increase
B. increase; decrease
C. decrease; increase
D. decrease; decrease
Answer: A
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A) $0 B) $8 C) $9 D) $11
According to economists Robert Lucas and Thomas Sargent, when are the gains to accurately forecasting inflation highest?
A) when inflation is high and stable B) when inflation is moderate but stable C) when inflation is high and unstable D) when inflation is low
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a. increase planned investment b. decrease planned spending c. increase exports d. decrease imports e. decrease saving
The opportunity cost of studying for an economics test is
A. The money you spent on tuition for the class. B. Negative because it may improve your grade. C. The activity that is the best alternative use of your time. D. Zero because you knew when you registered for the class that studying would be required.