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Question
Travis always carries $100 in his wallet to pay for groceries. This is an example of the
A) precautionary demand for money.
B) asset demand for money.
C) transactions demand for money.
D) wealth demand for money.
Answer
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Related questions
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When John earned $65,000 he purchased 10 DVDs a year. His income has just increased to $68,000 and he plans to purchase 15 DVDs this year. Johnʹs income elasticity of demand equalsA) 0 B) 0.11 C) 1.67 D) 8.87
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The regulation of the prices charged by insurance companies is known asA) the Federal Register. B) social regulation.C) the market share test. D) economic regulation.
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Q:
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If the marginal product curve is intersecting the average product curve, we know thatA) the average variable cost curve is intersecting the average total cost curve.B) the marginal cost curve is intersecting the average fixed cost curve. C) the average total cost curve lies above the marginal cost curve.D) the marginal cost curve is intersecting the average total cost curve.
Q:
Suppose that the implicit cost for a business was $1,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $6 per item. We can conclude that the firmʹsA) accounting profit was $6,000, and its economic profit was $0. B) accounting and economic profits were both $0.C) accounting profit was $1,000, and economic profit cannot be determined. D) accounting profit was $1,000, and economic profit was $0.
Q:
Which of the following would cause the labor demand curve to shift to the right?A) A decrease in demand for the product the labor is used to produceB) An increase in labor productivityC) A decrease in the price of a complimentary resourceD) All of the above
Q:
A monopolistic competitor is like a competitive firm in the long run, because
A) it earns positive economic profits.
B) it earns zero economic profits
C) both firms will earn positive economic profits.
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Q:
In a perfectly competitive market, if P > MC, then
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B) too much output is being produced.
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D) the firm is paying a price for resources that is too high.
Q:
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Q:
Short-run cost relationships for a firm areA) determined by the law of diminishing marginal product.B) determined by the specific long-run relationships that exist. C) due to the level of wages relative to other input prices.D) due to the normal contractual relations in a market.
Q:
The concept of the production function implies that a firm using resources inefficiently willA) obtain less output than the theoretical production function shows. B) obtain more output than the theoretical production function shows.C) obtain exactly the amount that the theoretical production function shows. D) not be subject to diminishing marginal product.
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Use the above figure. When the budget line rotates from ʺbʺ to ʺcʺA) the price of product J increases. B) the price of product J decreases. C) the price of product K increases. D) the price of product K decreases.
Q:
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Q:
The law passed by Congress in 1914 that was designed to sharpen or define further the vagueness of the Sherman Act is calledA) the Robinson-Patman Act. B) the Wheeler-Lea Act.C) the Clayton Act. D) the Federal Trade Commission Act.
Q:
Which of the following best describes a situation of economic efficiency?A) A firm produces to the point at which P = AVC, with MR < MC. B) A firm produces to the point at which P = ATC, with MC < MR. C) A firm produces to the point at which MR = AFC, with P = AVC. D) A firm produces to the point at which MR = MC, with P = MC.
Q:
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Q:
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Q:
Voluntary agreements may not be a feasible method to internalize an externality whenA) the dollar value of the externality is large.B) the externality is negative rather than positive. C) there are significant transaction costs.D) there are high taxes on the firms that cause the externalities.
Q:
The health care market in the United States is characterized by
A) considerable government involvement.
B) third-party payment of health care costs.
C) asymmetric information between providers and consumers.
D) all of the above
Q:
Why should a perfect competitor produce at which price equals marginal cost?
Q:
Which of the following is a true statement?A) Any property right system will yield a situation in which all externalities are internalized. B) Voluntary agreements can always yield a situation in which all externalities are internalized.C) Opportunity costs always exist with whoever has property rights.D) Opportunity costs turn external costs into social costs.
Q:
ʺThe market demand curve for labor is the horizontal summation of the labor demand curves of all firms.ʺ Do you agree or disagree? Why?
Q:
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Q:
Suppose that during a given time period the implicit cost for a business was $1,500 and that the explicit cost was $6,000. Also suppose that the firm sold 1,000 units of its products at $7 per item. We can conclude that the firmʹsA) accounting profit was $1,000, and its economic profit was -$500. B) accounting and economic profits were both $1000.C) accounting profit was -$500, and economic profit was $1,000. D) accounting profit was $1000, and economic profit was -$1,500.
Q:
ʺThe slope of the demand curve gives the elasticity of demand.ʺ Do you agree or disagree?
Why?
Q:
Which of the following type of shops is unlawful under the provisions of the Taft -Hartley Act?A) union shops B) closed shopsC) modified union shops D) open shops