In the above figure, if there is a negative relationship between the variables x and y, which of the graphs above can be used to indicate this?
A) Figure A
B) Figure B
C) Figure C
D) both Figure A and Figure C
Ques. 2In the money market, if the interest rate exceeds the equilibrium interest, there is a surplus of money. How is the surplus eliminated?
A) People buy bonds to rid themselves of the surplus money, bidding up their price and pushing interest rates down.
B) Banks will lend out the surplus, lowering interest rates.
C) The Federal Reserve will destroy currency, reducing the quantity of money.
D) The high interest rate increases the demand for money, eliminating the surplus.
Ques. 3The table above gives Cathy's total utility from Mt. Dew. If the price of a Mt. Dew is 1.50, Cathy's marginal utility per dollar from the 4th Mt. Dew is ________ units per dollar.
A) 15
B) 10
C) 82.5
D) 22.5
Ques. 4The above figure shows the marginal social benefit and marginal social cost curves of chocolate in the nation of Kaffenia. At Kaffenia's efficient quantity of chocolate
A) total consumer surplus is zero.
B) total producer surplus is zero.
C) the sum of consumer surplus and producer surplus is zero.
D) the sum of consumer surplus and producer surplus is maximized.
Ques. 5The infant-industry argument is the only perfectly valid argument for protection.
Indicate whether the statement is true or false
Ques. 6Using the data in the above table, which worker hired at Jefferson's Cleaners is the first to show diminishing marginal returns?
A) the second
B) the third
C) the fourth
D) the fifth
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