The law of diminishing marginal utility holds that at some point consumption of additional units of a commodity adds less to total utility
a. True
b. False
Indicate whether the statement is true or false
True
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If the MPC is 0.70, then the spending multiplier is equal to:
a. 0.70. b. 0.30. c. 0.14. d. 3.33. e. 5.
Which of the following statements is false?
A) The exchange equation assumes that velocity is constant. B) Velocity is the average number of times a dollar is spent to buy final goods and services in a year. C) The simple quantity theory of money predicts that changes in the money supply lead to strictly proportional changes in the price level. D) In the simple quantity theory of money the aggregate supply curve is vertical.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.
Average fixed costs
A. fall as output rises. B. are the costs associated with producing an additional unit of output. C. reach their minimum at the output level where the average fixed cost curve is intersected by the marginal cost curve. D. provide a per unit measure of costs.