Refer to the accompanying table. The law of diminishing marginal utility:UnitsMarginal Utilityof Good AMarginal Utilityof Good B1304022733315244814
A. applies to both Good A and Good B.
B. applies to Good A but not Good B.
C. applies to Good B but not Good A.
D. does not apply to either Good A or Good B.
Answer: A
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Which of the following is not a benefit to lenders/investors of financial intermediation?
a. Lower transaction costs than the direct market. b. Lower risks than the direct market. c. More diversification than the direct market. d. More convenient than the direct market. e. Higher yield than the direct market.
Suppose that the organic-produce industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that these conditions will
a. shift the demand curve outward so that price will rise to the level of production cost. b. cause the remaining firms to collude so that they can produce more efficiently. c. cause the market supply to decline and the price of organic produce to rise. d. cause firms in the organic-produce industry to suffer long-run economic losses.
Iggie took a university teaching job as an assistant professor in 1980 at a salary of $15,000 . By 2011, she had been promoted to full professor, with a salary of $70,000 . If the price index was 82 in 1980 and 225 in 2011, then what is Iggie's 1980 salary in 2011 dollars?
a. $5,400 b. $20,466 c. $26,158 d. $41,159
The Social Security system in the United States today is
A. actuarially sound. B. composed of a private pension fund into which workers have paid and who will withdraw their invested funds upon retirement. C. currently in no danger of running out of money in the long run. D. no longer a “pay as you go” system.