If consuming more of a good doesn't affect a consumer's well-being, then:
A. the marginal utility of the good is positive.
B. the marginal utility the good is negative.
C. the marginal utility the good is constant.
D. the marginal utility the good is zero.
D. the marginal utility the good is zero.
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of producer surplus?
A) $5 thousand B) $12.5 thousand C) $25 thousand D) $37.5 thousand
Suppose the price of capital and labor remain constant but that the average educational level of workers has increased and therefore, productivity of labor increases. This would lead a firm
A) to adopt a more capital-intensive production technology. B) to keep its output and production technology unchanged, but to use fewer units of labor. C) to adopt a more labor-intensive technology. D) to use only labor to produce the product.
Both countries can benefit from trade when:
A. there are no trade barriers that are erected by either country. B. at least one country produces the good for which it has an absolute advantage. C. each specializes in producing the good for which it has a comparative advantage. D. each specializes in producing the good for which it has an absolute advantage.