If marginal utility from consuming an extra unit of a good is positive, then the consumer's total utility must increase as more of the good is consumed
a. True
b. False
A
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The study of individual choice and its implications for the behavior of prices and quantities in individual markets is:
A. macroeconomics. B. the Scarcity Principle. C. microeconomics. D. a normative economic principle.
When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. competitive forces will tend to reduce discrimination. b. the wages of employees who are discriminated against will rise. c. an employer who discriminates will have the same costs as those who do not discriminate. d. discrimination by an employer will reduce production costs since the employer can pay lower wages.
If a 10% increase in price increases the quantity supplied by 15%, the price elasticity of supply is 0.67.
Answer the following statement true (T) or false (F)
A bank that makes most of its long-term loans at adjustable interest rates is:
A. reducing both interest rate and credit risk. B. increasing credit risk and reducing interest rate risk. C. increasing both interest-rate and credit risk. D. reducing credit risk and increasing interest-rate risk.