If total utility increases when you consume more of a good, then marginal utility must also be increasing as consumption rises.
a. true
b. false
b. false
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The process by which identical products that are tradeable converge to the same price is called
A) arbitrage. B) hedging. C) speculation. D) risk aversion.
The response of output following a natural disaster includes
A) an increase in output demand and an increase in output supply. B) an increase in output demand and a decrease in output supply. C) a decrease in output demand and an increase in output supply. D) a decrease in output demand and a decrease in output supply.
Some economists believe that because the government ______________ discouraged workers as unemployed, the unemployment rate is biased ________________
A) counts; upward B) counts; downward C) does not count; upward D) does not count; downward
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary