If the cost were greater than the marginal benefit of a good:
A. consumers could increase their utility by buying more.
B. consumers could increase their utility by buying less.
C. producers should increase production.
D. social net benefit would be maximized.
B. consumers could increase their utility by buying less.
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The natural rate hypothesis states that when the inflation rate
A) increases, the unemployment rate will decrease permanently. B) changes, the unemployment rate changes temporarily and eventually returns to the natural unemployment rate. C) decreases, the inflation rate will decrease permanently. D) changes, the change is only temporary, and eventually the inflation rate returns to the natural inflation rate. E) increases, the natural unemployment rate increases.
Because of the relationship among ethanol production, sugar, and corn the authors of your text have concluded that:
a. the corn subsidy is a big problem for ethanol exports. b. the sugar quota makes sugar so cheap in the United States that ethanol producers are using it instead of corn. c. due to the sugar quota and its high price, there is a huge demand for less environmentally friendly corn as a substitute in food products and for ethanol. d. ethanol should be imported rather than exported.
Which of the following is an appropriate policy for the Fed to pursue if it wants to increase the money supply?
A) raise the reserve requirement B) raise the discount rate C) buy U.S. Treasury bills D) lower taxes
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point A to Point B is
A. -2/3. B. -1.5. C. -3. D. -30.