Total satisfaction is maximized when
A) marginal utility is positive.
B) marginal utility is negative.
C) marginal utility is zero.
D) marginal utility is equal to average utility.
Answer: C
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With reference to the difference between a change in demand and a change in quantity demanded, which of the following is TRUE?
A) If a good's price goes down, then demand for the good will decrease. B) If a good's price goes down, then quantity demanded will increase. C) If demand increases, then the demand curve will shift to the left. D) If price rises and quantity demanded decreases, then the demand curve will shift to the left.
A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP. b. lowers the interest rate, causing a decrease in investment and an increase in GDP. c. raises the interest rate, causing an increase in investment and a decrease in GDP. d. raises the interest rate, causing an increase in investment and an increase in GDP. e. raises the interest rate, causing a decrease in investment and a decrease in GDP.
According to the quantity equation, if velocity and real GDP are constant, and the Federal Reserve increases the money supply by 5 percent, then the price level:
A. increases by 5 percent. B. decreases by 5 percent. C. decreases by more than 5 percent. D. increases by more than 5 percent.
Temporary supply shocks:
A. would affect the short-run equilibrium. B. are significant events that directly affect production. C. shift the aggregate-supply curve in the short run. D. All of these are true.