Which of the following is explained by the law of diminishing marginal utility?
A) The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her third bottle of Coca-Cola.
B) The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her third pretzel.
C) The marginal utility of Isabel's second bottle of Coca-Cola is greater than the marginal utility of her friend Margie's third pretzel.
D) The total utility of one bottle of Coca-Cola is greater than the total utility of two bottles of Coca-Cola.
Answer: A
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Money is created through the banking processes of taking deposits and making loans if
A) the banks require individual depositors to hold "reserves." B) the banks require individual borrowers to hold "reserves." C) paper deposit receipts are not acceptable means of payment. D) paper deposit receipts are accepted as a means of payment.
Expansionary monetary policy will
a. often raise real interest rates in the short run. b. generally reduce aggregate demand in the short run. c. lead to higher nominal interest rates if the expansionary policy persists over a lengthy time period. d. lead to a rapid growth of real GDP if the expansionary policy persists over a lengthy time period.
Which of the following results in the aggregate demand curve shifting rightward year after year?
What will be an ideal response?
Which legal claim comes with the most preferential treatment in the payment of dividends?
A. common stock B. preferred stock C. bond D. interest