A person will choose to work another hour if the benefit of another hour of work is:
A. greater than the opportunity cost.
B. exactly equal to the average total cost to the firm.
C. exactly equal to the opportunity cost.
D. less than the opportunity cost.
Answer: A
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The "efficiency of the payments mechanism" refers to
a. the ease and speed of exchanging money for goods and services. b. how fast member banks replenish required reserves. c. how fast banks pay interest on deposit accounts. d. how fast countries pay off foreign debts.
Suppose the price of lumber decreases. In the market for new homes, we would expect which of the following to occur?
A) the market clearing price will fall and the equilibrium quantity will rise. B) the market clearing price will rise and the equilibrium quantity will fall. C) both the market clearing price and the equilibrium quantity will fall. D) both the market clearing price and the equilibrium quantity will rise.