When a price changes, consumers have an incentive to consume less of the good with a relatively higher price and more of the good with a relatively lower price. What is this an explanation for? A) Demand Effect

B) Supply Effect

C) Income Effect

D) Substitution Effect

Question 37 (1 point)
A higher price means that, in effect, the buying power of income has been reduced, even though actual income has not changed. What is this the explanation for?

A) Income Effect

B) Supply Effect

C) Substitution Effect

D) Demand Effect

Question 38 (1 point)
If Australia holds an absolute advantage in didgeridoos and Japan holds an absolute advantage in katana blades, both countries could be made better off if they specialize in those respective goods and trade.

True
False
Question 39 (1 point)

We must learn to ignore sunk costs when making decisions.
True
False

Question 40 (1 point)

Allocative efficiency takes place at every point along the production possibilities frontier.

True
False

Uppose that the federal reserve purchases a bond for $100,000 from donald truck, who deposits the proceeds in the manufacturer’s national bank. what will be the impact of this purchase on the supply of money? the money supply will increase by $100,000. the money supply will increase by $80,000. the money supply will increase by $500,000. this action will have no effect on the money supply. if the reserve requirement ratio is 20 percent, what is the maximum amount of additional loans that the manufacturer’s bank will be able to extend as the result of truck’s deposit? the maximum additional loans is $100,000. the maximum additional loans is $80,000. the maximum additional loans is $20,000. the maximum additional loans is $500,000. given the 20 percent reserve requirement, what is the maximum increase in the quantity of checkable deposits that could result throughout the entire banking system because of the fed’s action? this action will have no effect on the money supply. the money supply will eventually increase by $80,000. the money supply will eventually increase by $500,000. the money supply will eventually increase by $100,000.

4.     chef a says that broth should be brought to a boil. chef b says that broth should be kept at an even, gentle simmer. which chef is correct? a. neither chef is correct. b. chef a is correct. c. both chefs are correct. d. chef b is correct. student c   incorrect which is right answer

You hold a diversified $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. the portfolio's beta is 1.12. you plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. what will the portfolio's new beta be? do not round your intermediate calculations.