Utility theory assumes that marginal utility of a good
a. increases as an individual consumes more of the good
b. decreases as an individual consumes more of the good
c. is greater than total utility as long as total utility is greater than zero
d. is constant as long as the individual derives utility from the good
e. is greater than total utility as long as marginal utility is greater than zero
B
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According to Robert Reich, Secretary of Labor in the Clinton administration,
A. the identity of American companies is clear, and laws should be written accordingly. B. foreign companies are clearly different from American companies. C. multinational companies have clear bases of operations, which form their identity. D. it is almost impossible to define the nationality of a multinational company. E. identifying the country of origin of a product is almost impossible but essential for proper regulation.
In a price-leadership oligopoly model, the oligopoly firms engage in price wars
a. True b. False Indicate whether the statement is true or false
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa
The crowding-out effect refers to the possibility that:
A. when used simultaneously, expansionary fiscal and monetary policies are counterproductive. B. the asset demand for money varies inversely with the interest rate. C. deficit financing will increase the interest rate and reduce investment. D. an increase in the supply of money will result in a decline in velocity.