Let MUc denote the marginal utility that Pablo receives from a cup of coffee, and let Pc denote the price of a cup of coffee. We typically expect that as Pablo buys more coffee:
A. MUc and Pc will both fall.
B. MUc/Pc will fall.
C. MUc/Pc will not change.
D. MUc/Pc will rise.
Answer: B
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A) shift rightward. B) shift leftward. C) become steeper. D) be unaffected.
If the economy is in a recession and prices are relatively stable, then the discretionary fiscal policy or policies that would most likely be recommended to correct this macroeconomic problem would be:
a. Increased government spending or decreased taxation, or a combination of the two actions b. Decreased government spending or decreased taxation, or a combination of the two actions c. Increased government spending or increased taxation, but not a combination of the two actions d. Increased government spending or increased taxation, or a combination of the two actions
The largest net international lenders since 1980 have been
A. Russia and Saudi Arabia. B. the United Kingdom and France. C. the United States and china. D. Japan and Germany.
Producer surplus equals total revenue minus the sum of all marginal cost
Indicate whether the statement is true or false