If two units of a good provide 8 utils and the marginal utility of the third unit of the good is 2 utils, what is the total utility from consuming three units of the good?
A) 2 utils
B) 8 utils
C) 10 utils
D) 6 utils
Answer: C
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How do we allocate statistical discrepancy among the current, capital, and financial accounts?
A) We have no way of knowing exactly how to allocate this discrepancy. B) Depend on the degree of certainty by which we attribute to these accounts. C) Divide it evenly amongst the three accounts. D) Depend on the convention adopted by the specific financial institution. E) Statistical discrepancy signals human errors made when dealing with financial accounts.
How do we measure economic growth?
a. Increases in the price level, as indicated by the GDP chain price index. b. Increases in nominal GDP. c. Increases in real GDP. d. Increases in the labor force.
Suppose that the current money market equilibrium features an interest rate of 5 percent and a quantity of $2 trillion. If the Fed raises the discount rate, which of the following is most likely to be the new money market equilibrium?
A. An interest rate of 6 percent and a quantity of $1.5 trillion. B. An interest rate of 5 percent and a quantity of $2 trillion. C. An interest rate of 4 percent and a quantity of $2.5 trillion. D. An interest rate of 3 percent and a quantity of $3 trillion.
The value of the marginal propensity to consume is
a) between 0 and 1 b) between 1 and 10 c) between -1 and 1 d) between 1% and 100%