According to the law of diminishing marginal utility:
A. total utility is always falling.
B. after some point, total utility falls.
C. total utility is always rising.
D. after some point, the rate of change in total utility declines.
Answer: D
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An estimation method is unbiased if it produces a(n) ________ that equals the ________ on average
A) R2; t-statistic B) estimated coefficient; true coefficient C) error term; standard error D) estimated coefficient; residual
An increase in aggregate demand tends to cause a ____ a short run Phillips curve at first, then cause a ____ in the short run Phillips curve as people adjust their expectations. a. Movement up along; upward shift
b. Movement up along; downward shift. c. Movement down along; upward shift. d. Movement down along; downward shift.
A budget surplus is defined as the amount that the
A. government owes to lenders at any moment in time. B. government spends in any time period. C. government’s expenditures exceed receipts in any time period. D. government’s receipts exceed expenditures in any time period.
Which of the following statements about Social Security is FALSE?
A. Social Security is an intergenerational transfer where the benefits paid are only roughly related to past earnings. B. Benefit payments under Social Security are based on the recipient's need. C. Over 90 percent of all employed workers in the United States are covered by Social Security. D. Benefit payments under Social Security redistribute income from young to old.