After eating four slices of pizza, you are offered a fifth slice for free. You turn down the fifth slice. Your refusal indicates that the
A. marginal utility for four pizza slices is negative.
B. marginal utility is positive for the fourth slice and negative for the fifth slice.
C. marginal utility for the fourth slice is the largest among all slices.
D. total utility for five pizza slices is negative.
Answer: B
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In the short-run, real GDP can be greater than or less than potential GDP because in the short run the
A) money wage rate is fixed. B) quantity of capital is fixed. C) full-employment level of employment is fixed. D) price level is fixed.
A perfectly competitive firm's marginal revenue is
a. slightly higher than it's selling price. b. slightly lower than it's selling price. c. higher than selling price when reducing output, lower than selling price when increasing output. d. exactly equal to selling price.
The coefficient that represents the average number of times a dollar is used to buy goods and services is called
a. the demand for money. b. the quantity theory of money. c. the price level. d. the velocity of money.
Consider the production possibilities frontier in the figure shown. As more and more cigars are produced the opportunity cost of producing more cigars:
A. decreases. B. increases. C. stays the same. D. decreases then increases.