The law of diminishing marginal utility is the principle that the marginal utility curve ____ as people consume more of a product in a given period
a. rises.
b. falls.
c. remains unchanged.
d. first falls and then rises.
b
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At __________ income levels on the LM curve, the interest rate must be __________
A) higher; lower B) lower; higher C) higher; unchanged D) higher; higher
A consumer's budget line for food (F) and shelter (S) is represented as F = 250 - 5S. If this consumer's income increases by $10 and consumption of shelter remains unchanged, how many more units of shelter can be purchased at most?
A) 10 B) 20 C) 50 D) 2
Which of the following statements is true?
A. Leverage increases expected return and increases risk. B. Leverage increases expected return and reduces risk. C. Leverage decreases expected return and increases risk. D. Leverage decreases expected return but has no effect on risk.
Answer the following statements true (T) or false (F)
1) Exports are subtracted from imports in calculating U.S. GDP because exports are not available for domestic consumption. 2) The purchase of Walmart stock is a part of gross investment, but not of net investment. 3) The purchase of Walmart stock is a part of gross investment, but not of net investment. 4) Personal income usually exceeds disposable income. 5) Welfare payments to low-income families are included in national income.