The faster marginal utility declines the:
A. greater the elasticity of demand.
B. larger the opportunity cost of the good.
C. smaller the elasticity of demand.
D. smaller the opportunity cost of the good.
Answer: C
You might also like to view...
Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income. B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals. C) Yes, because government deficits or surpluses affect the total demand for credit. D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
An example of asymmetric information is when a seller of a house knows more than the buyer about the house's condition
a. True b. False Indicate whether the statement is true or false
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Since 1950, the volume of world trade and the volume of world real GDP
A. have both increased, but the volume of world trade has increased faster than the volume of world real GDP. B. have both decreased at roughly the same rate. C. have both increased at roughly the same rate. D. have both increased, but the volume of world trade has increased more slowly than the volume of world real GDP.