Table 5-1B
Number of coconuts
0
1
2
3
4
Robinson’s marginal utility
C
$2.00
$1.88
$1.60
$1.30
If a graph of Robinson’s marginal utility were constructed from Table 5-1B, it would
A. illustrate the “law” of diminishing marginal utility.
B. be a negatively sloped curve.
C. illustrate a typical consumer’s satisfaction derived from consumption of consecutive units of a good.
D. All of the responses are correct.
Answer: D
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Comparative advantage is determined by
A) actual differences in labor productivity between countries. B) relative differences in labor productivity between countries. C) Both A and B. D) Neither A nor B.
Which of the following does NOT affect the position of the DD curve?
A) monetary policy B) government spending C) taxes D) export demand E) price levels
Official unemployment statistics in the United States are derived from a monthly government survey of approximately ________ households
A) 300 B) 2000 C) 60,000 D) 420,000
Government spending:
A. tends to increase with increases in the price level. B. tends to increase with decreases in the price level. C. remains generally unaffected by changes in the price level. D. is not a component of aggregate demand.