Increases in total utility from the consumption of a good decrease as more is consumed. This statement is
A) the law of diminishing marginal utility.
B) the law of average utility.
C) the consumer optimum.
D) not consistent with the assumption of rational behavior.
Answer: A
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The advantages of the M-Form of firm organization is
a. divisions can respond more easily to change b. it is easier to maintain customer relationships c. there is less coordination across the firm's divisions d. all of the above
The growth rates of actual and potential GDP
A. are similar in both the short and long run. B. are similar in the short run but not the long run. C. are similar in the long run but not the short run. D. are different in both the short and long run.
Which of the following shifts both the short-run and long-run aggregate supply right?
a. an increase in the actual price level b. an increase in the expected price level c. an increase in the capital stock d. None of the above is correct.
Economic systems differ according to which two main characteristics?
A. Who owns the factors of production and the methods used to coordinate economic activity. B. The technology used in production and the quantity and quality of natural resources. C. How goods are produced and who gets them. D. The political system in place and the degree of scarcity facing the economy.