If marginal utility is negative, then
A. Total utility is at a minimum.
B. Total utility will decrease with additional consumption.
C. The good or service being consumed is an inferior good.
D. Total utility will increase with additional consumption.
Answer: B
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What was not a reason for the decline of the Deep South between the Civil War and 1890?
a. Elimination of economies of scale in the production process. b. An extended period of droughts and bad weather. c. Significant withdrawal of labor from the fields, especially by women and children. d. Increased competition from cotton suppliers in other nations.
The above figure shows a perfectly competitive firm. If the market price is $20 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.
China runs a current account surplus with the United States. Which of the following must be true about China's balance of payments with the United States?
A) It must run a financial account deficit. B) Its net exports must be negative. C) Its balance of trade must be in deficit. D) Its balance of payments must run a deficit.
Suppose the price index was 110 in 2004, 120 in 2005, and 125 in 2006 . Which of the following statements is correct?
a. The economy experienced inflation between 2004 and 2005 and between 2005 and 2006. b. The inflation rate was positive between 2004 and 2005, and it was negative between 2005 and 2006. c. The inflation rate was higher between 2005 and 2006 than it was between 2004 and 2005. d. All of the above are correct.