If total utility is decreasing, then marginal utility is
A) negative.
B) positive.
C) zero.
D) increasing.
Answer: A
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The Fed buys $100 million of government securities from Bank A. What is the effect on Bank A's balance sheet?
A) Securities decrease by $100 million and reserves increase by $100 million. B) Securities decrease by $100 million and deposits decrease by $100 million. C) Securities increase by $100 million and reserves decrease by $100 million. D) Securities increase by $100 million and reserves increase by $100 million.
Shortages are the same thing as excess:
A.) Supply caused by price floors. B.) Supply caused by price ceilings. C.) Demand caused by price floors. D.) Demand caused by price ceilings.
The following table shows Alex's estimated annual benefits of holding different amounts of money.Average moneyholdings($)Total benefit($)700508005990066100071110074How much money will Alex hold if the nominal interest rate is 8 percent? (Assume she wants her money holdings to be in multiples of $100.)
A. $900 B. $800 C. $1,000 D. $700
A jury award that wildly overstates non-monetary losses can harm the economy primarily because it
A. still fails to adequately compensate the injured party for all damages. B. takes from the rich and gives to the poor. C. causes overly-cautious buyers and sellers to avoid mutually-beneficial transactions. D. enriches greedy plaintiff's lawyers.