If a commodity is inexpensive and its total utility is great,
A. it is an inferior good.
B. it is plentiful.
C. its marginal utility is high.
D. the ratio of price to marginal utility is very high.
Answer: B
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About 46 percent of M1 is composed of
A) demand deposits. B) money market mutual funds. C) savings deposits. D) currency held by the public.
Firms in perfect competition will leave the industry if they
a. suffer short-run losses b. suffer losses, even if they are covering variable costs in the short run c. suffer long-run losses d. earn a normal profit e. earn a zero economic profit
If the price elasticity of demand is equal to 2, the good has ________ demand.
A. unitary elastic B. elastic C. restrictive D. inelastic
The value of goods, services, incomes or wealth subject to taxation is
A. the tax base. B. the collected tax revenue. C. a sales tax. D. a unit tax.