Economists state that the __________ utility a person receives from a unit of a good, the __________ the price he or she is willing to pay for it
A) more; lower
B) more; higher
C) less; higher
D) less; lower
E) b and d
E
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Suppose an economy's exchange rate system is the gold standard and vast tracks of gold are discovered, as is what happened in the United States in 1849. If the economy is at full employment, what should this discovery do?
A) It should lower the money supply and cause deflation. B) It should raise the money supply and cause inflation. C) It should raise the money supply and cause disinflation. D) It should raise the money supply but have no impact on the price level. E) it should not change the money supply.
As a percentage of GDP, all of the following federal government expenditures are expected to increase from 2012 to 2042 except
A) Social Security. B) Medicare and Medicaid. C) the net interest on the federal debt. D) national defense.
Rational expectations economists believe that the potential effects of government policy changes are ______ addressed by households and firms.
a. slowly b. quickly c. unreasonably d. infrequently
The decision by a nation to join a currency union is based on:
A) the size of the nation's GDP. B) the diversification of its industry and population. C) the cost of designing, printing, and managing a national currency. D) the costs of abandoning a national currency versus the benefits of a common currency.