If marginal utility is negative
A. the consumer will not consider extra units of the good even if its price is zero.
B. total utility increases at a decreasing rate.
C. the consumer will want to consume the unit only if it is free.
D. the consumer likes the commodity, but not as much as he or she once did.
Answer: A
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Which of the following is an example of a worker experiencing cyclical unemployment?
A) an assembly line worker who loses his job because of automation B) a worker who quits his job because he does not get along with his boss C) a worker who changes jobs to move closer her family D) a lifeguard who was hired during the summer season is laid off after summer is over E) a freightliner employee that got laid off because of the recession of 2007-2009
The amount of good A given up for good B in trade is the
A. Exploitation of consumers. B. Comparative advantage. C. Terms of trade. D. Absolute advantage.
A period of significant decline in economic activity, marked by falling GDP, rising unemployment, and an increased number of bankruptcies, is called:
A. a boom. B. a recession. C. an expansion. D. a severe depression.
Two nations have the following production capacity given their endowment of resources. Country A can produce 40 units of beer or 90 units of pizzas. Country B can produce 120 units of beer or 70 units of pizzas. Which of the following statements is most appropriate to decide how these countries should specialize?
A. Country B has an absolute advantage in both products. B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer. C. Country A has no comparative advantage and country B has a comparative advantage in beer. D. Country A has a comparative advantage in beer and country B has a comparative advantage in pizzas.