Total utility:
a. generally diminishes as consumption of a good increases.
b. always increases as consumption increases
c. increases only as long as marginal utility increases.
d. increases as long as marginal utility is positive.
d
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Which of the following does free trade encourage?
A) higher rates of economic growth B) more rapid spread of technology C) domestic industries' access to larger markets D) all of the above
How many Federal Reserve District Banks are there?
A) 5 B) 7 C) 12 D) 1
The "information barrier" that is the root cause of business cycles in the Lucas model is that
A) workers observe the prices of what they personally buy, but cannot observe the general price level. B) workers do not know when changes in the price level mean changes in the prices of the goods they buy. C) firms do not know when changes in the price of the good they sell matches changes in the price level and thus their marginal cost. D) firms do not know if a change in the price level will have any effect on their marginal cost and thus their willingness to supply.
Centrally planned economies are not constrained by the problem of scarcity
a. True b. False Indicate whether the statement is true or false