The law of diminishing marginal utility states that total utility must eventually diminish in the consumption of any good or service
Indicate whether the statement is true or false
F
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A financial system is a means of bringing together savers and borrowers.
Indicate whether the statement is true or false.
An issue that proposals for international reform agree on is that
A) the IMF should intervene more in financial crises. B) there must be a lender of last resort. C) IMF quotas are currently set at an appropriate level. D) the Basel capital requirements for banks should be increased.
(Consider This) The idea that the price level readily moves upward but not downward is called the:
A. elevator effect. B. escalator effect. C. ratchet effect. D. stair-step effect.
Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Which of the following is true?
A. Neither country can benefit from trade since no comparative advantage exists. B. Country B should produce iPods and Country A should produce tablets, and they could benefit from trade. C. Because Country B has the absolute advantage in producing tablets, they should specialize in the production of tablets. D. Country B should produce tablets and Country A should produce iPods, and they could benefit from trade.