The principle of diminishing marginal utility says that:
A. as more of a good or service is consumed, demand decreases.
B. as more of a good or service is consumed, the price will rise.
C. the marginal utility of additional units consumed decreases.
D. an increase in income causes demand to increase.
Answer: C
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Which of the following is the best example of "what goods and services should be produced?"
A) the use of a capital intensive versus a labor intensive process of manufacturing textiles B) the production of SUVs versus the production of sub-compact cars C) the manufacturing of computer workstations in China or in India D) the leasing versus the purchasing of new capital equipment
The Japanese yen will appreciate against the dollar if
A) U.S. residents demand more Japanese goods. B) U.S. residents demand fewer Japanese goods. C) Japanese residents demand more U.S. goods. D) none of the above.
The vicious circle of poverty in the poorest DVCs can also be expressed as:
A. The rich get richer while the poor get poorer B. Fate dealt the poor nations a bad hand C. The poor nations stay poor because they are poor D. Historical developments have oppressed the poor nations' incomes
An increase in which of the following factors does not increase the incentive to cheat within a cartel?
A. the number of firms in the cartel B. economic performance and industry sales C. the cost-differences among firms D. the number of potential entrants into the industry