When the demand for a good increases and the supply of the good remains unchanged, consumer surplus
a. decreases.
b. is unchanged.
c. increases.
d. may increase, decrease, or remain unchanged.
d
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Arthur Bach is worth $780 million dollars. He goes into an upscale men's store and buys 32 green sweaters, each costing $200 . If Arthur has maximized his utility from this purchase, what is the marginal utility of the thirty-third green sweater?
a. cannot tell b. greater than $200 c. less than $200 d. 0 e. $200
The average variable cost, the average total cost, and the marginal cost start to diminish only after the firm reaches the point of efficient scale
a. True b. False Indicate whether the statement is true or false
The difference between what you earn, say $1 million, and what you would be willing to work for, say, $80 thousand, is called your ______________.
Fill in the blank(s) with the appropriate word(s).
Answer the following statements true (T) or false (F)
1) If the MPC is .8 in a private closed economy, a $30 billion increase in planned investment will increase equilibrium real GDP by $120 billion. 2) Actual investment consists of planned investment plus unplanned changes in inventories (plus or minus). 3) A $20 billion decrease in investment in a private closed economy that has an MPS of .5 will reduce saving by $10 billion once the multiplier process has ended. 4) Exports are added to, and imports are subtracted from, aggregate expenditures in moving from a closed to an open economy.