If Al is risk averse, as his wealth increases, his total utility of wealth ________ and his marginal utility of wealth ________
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
B
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When U.S. official reserves ________, the official settlements account balance becomes negative and when U.S. official reserves ________, the official settlements account balance becomes positive
A) increase; decrease B) decrease; increase C) increase; increase D) decrease; decrease E) More information is needed about the balances on the current account and the capital account in order to answer this question.
With international trade, a country will export tires. Prior to international trade, the quantity of tires produced in the country ________ the quantity of tires consumed in the country
A) must be more than B) must be less than C) might be more than, less than, or equal to D) must equal
While in college, John and Bethany each buy five packages of mac-n-cheese per week. After they graduate and have full-time jobs, John buys six packages per week, but Bethany buys only two packages per week. When looking at income elasticity of demand for mac-n-cheese, John's
a. is negative, and Bethany's is positive. b. is positive, and Bethany's is negative. c. is zero, and Bethany's approaches infinity. d. approaches infinity, and Bethany's is zero.
In Figure 6.7 at equilibrium, producer surplus is area:
A. A. B. A + B + C. C. E + F + G. D. G.