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If A and B are complements, an increase in the price of good A would:
Correct answer(s):
- lead to a decrease in demand for B.
Which of the following pairs of goods are probably complements?
Correct answer(s):
- hamburgers and ketchup.
An increase in the price of steak will probably lead to:
Correct answer(s):
- an increase in demand for chicken.
Which of the following is probably not a normal good?
Correct answer(s):
- macaroni and cheese.
Good A is an inferior good, an increase in income leads to:
Correct answer(s):
- a decrease in the demand for good A.
A change in income will not lead to:
Correct answer(s):
- a movement along the demand curve.
Changes in the price of good A leads to a change in:
Correct answer(s):
- the quantity demanded of good A.
Which of the following would not shift the demand for good A?
Correct answer(s):
- drop in price of good A.
The law of demand states that, holding all else constant:
Correct answer(s):
- as price falls, quantity demanded rises.
The buyer side of the market is known as the:
Correct answer(s):
- demand side.
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. The full economic price under a price ceiling of $3 is
Correct answer(s):
- 8
In a competitive market, the market demand is Qd = 60 – 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in a
Correct answer(s):
- shortage of 30 units.
Marginal net benefits in the above table
Correct answer(s):
- Initially decrease, reach a minimum and then increase
Net benefits in the above table
Correct answer(s):
- Initially decrease, reach a minimum and then increase
Total costs in the above table are
Correct answer(s):
- Decreasing at an decreasing rate
The opportunity cost of an action is the
Correct answer(s):
- Value of the most highly valued alternative action given up
If the interest rate is 7%, $500 received at the end of 9 years is worth how much today?
Correct answer(s):
- 500/(1 +.07)9
If the annual interest rate is 0%, the present value of receiving $210 in the next year is:
Correct answer(s):
- $210
Negotiation between the buyer and seller of a new ski-boat is an example of:
Correct answer(s):
- Consumer-producer rivalry
Given the benefit function B(Y) = 200Y – 3Y2, the marginal benefit is:
Correct answer(s):
- 200 - 6Y