If you could pay for a product according to the marginal utility that you gain from additional consumption, then as you consume more of a product the price you pay would
A. remain the same.
B. be deferred.
C. decline.
D. increase.
Answer: C
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The purchase by a foreign government of an airplane produced in the United States is included in U.S
A) government purchases. B) investment expenditures. C) consumption expenditures. D) net exports.
If actual inflation is greater than the expected rate of inflation, then probably
A. the borrowers are made better off than lenders. B. the borrowers are made worse off than lenders. C. creditors gain at the expense of borrowers. D. savings accounts have increased in real terms.
Horizontal contracts generally run ______the goals of the customers
a. Indifferent to b. In line with c. Contrary to d. None of the above
Suppose each good costs $5 per unit and Megan holds $40 . What is the real value of the money she holds?
a. $40 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. b. 8 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold more dollars. c. $40 . If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars. d. 8 units of goods. If the price of goods rises, to maintain the real value of her money holdings she needs to hold fewer dollars.