If the marginal utility of income decreases as income increases, transferring income from the rich to the poor will
A. increase marginal utility, but not change total utility.
B. decrease total utility.
C. increase total utility.
D. not change total utility.
Answer: C
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By 1860, over one-half of all Southern farms utilized slave labor
Indicate whether the statement is true or false
Until the 1840s, the leading transport route in the US (in terms of volume of freight from the West) was:
a. the Northern Gateway. b. the Northeastern Gateway. c. the Southern Gateway. d. the Erie Canal.
If the government fiscal deficit equals $240 million and government borrowing equals $120 million, what is the change in the money supply in the economy?
a. $120 million b. $240 million c. $360 million d. $480 million e. $600 million
Inflation can cause a misallocation of resources because
A. firms have to change their price labels at unusual times. B. the nominal rate of inflation doesn't equal the real rate of inflation. C. people are encouraged to borrow too much. D. inflation doesn't proceed evenly which means that people have a difficult time determining when a price change signals a change in relative prices.