Courtney goes for an hour bike ride which yields a marginal utility of 8. She stops and gets an ice cream cone, and then rides her bike for another hour. We can say:
A. the utility gained from the ice cream was less than the second hour of bike riding.
B. the utility gained from a third hour of biking would be less than the utility gained from the one ice cream.
C. the utility gained from the ice cream was more than 8.
D. the utility gained from a second ice cream cone was more than a second hour of bike riding.
Answer: B
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Refer to Table 18.1. After trade begins, ________ will specialize in the production of hats and ________ will specialize in the production of gloves
A) Panama; Russia B) Russia; Panama C) Russia; Russia D) Panama; Panama
The decision about what goods and services will be produced in a market economy is made by
A) consumers and firms choosing which goods and services to buy or produce. B) consumers dictating to firms what they need most. C) workers deciding to produce only what the boss says must be produced. D) producers deciding what society wants most. E) lawmakers in the government voting on what will be produced.
The equilibrium interest rate will change if
a. the money demand curve shifts b. there is a movement along the money demand curve c. crowding out becomes so serious that the dollar loses value d. the federal funds rate fluctuates rapidly e. Congress threatens to put a cap on interest rates
Based on these graphs, the price level remains unchanged if the tax cut has ______ on both SRAS and AD.
a. no effect
b. a small effect
c. a moderate effect
d. a large effect