Which of the following statements about marginal utility is correct?
A. It is the change in total utility resulting from getting one additional unit of a good.
B. As consumption of a particular good increases, marginal utility decreases.
C. It is the satisfaction experienced from consuming a good.
D. Both It is the change in total utility resulting from getting one additional unit of a good and As consumption of a particular good increases, marginal utility decreases are correct.
Answer: D
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Okun's Law states that
A) there is a relationship between the unemployment rate, real GDP, and potential GDP. B) supply creates its own demand. C) as the unemployment rate rises, the inflation rate falls. D) a higher inflation rate leads to a higher nominal interest rate. E) as the real wage rate falls, the quantity of labor demanded increases.
A fall in the price of cabbage from $10.50 to $9.50 per bushel increases the quantity demanded from 18,800 to 21,200 bushels. The price elasticity of demand is
A) 0.80. B) 1.20. C) 1.25. D) 8.00.
Probably the best measure of a country's economic growth is the growth of
A) real domestic investment. B) real GDP. C) real GDP per person. D) real consumption expenditures.
Public goods are usually provided by:
a. private industry. b. the government. c. private citizens. d. internal markets e. local industry.