Using marginal utility theory, when the price of a gallon of milk falls, a consumer will buy
A) the same amount of milk as before and buy more of all other goods.
B) more milk.
C) more milk only if its marginal utility is increasing.
D) more milk only if its marginal utility is constant.
B
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According to the text, paper money probably first evolved from
A) the Federal Reserve. B) the early American savings and loan institutions. C) goldsmiths. D) the Bank of England.
Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A) The time period under consideration is short. B) The good is a necessity. C) The expenditure on the good is small relative to one's budget. D) A wide variety of substitutes are available for the good.
If the government spends less than what it receives in taxes during a given interval, then the result is
A) a balanced budget. B) an entitlement. C) unrealized public debt. D) a government budget surplus.
Which of the following was considered a mild recession?
A. 1937-1938 B. 1973-1975 C. 1981-1982 D. 1990-1991