At the point where total utility is at its peak, marginal utility is:
a. zero.
b. positive.
c. negative.
d. positive, but declining.
e. positive, but increasing.
a
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Contractionary monetary policy:
a) shifts the aggregate demand curve to the left. b) shifts the aggregate demand curve to the right. c) does not shift the aggregate demand curve. d) shifts the aggregate demand curve to the left and then back to the right.
If a fire insurance company requires firms buying fire insurance to install automatic sprinkler systems, the insurance company is trying to reduce
A) the problem of adverse selection. B) the moral hazard problem. C) sunk costs. D) asymmetric information.
Refer to the graph below. Suppose that its shows the S and D graphs in a market where the product has all the characteristics of a public good. In this case, the government should use its coercive power to make:
A. The supply curve shift to the left
B. The supply curve shift to the right
C. The demand curve shift to the left
D. The demand curve shift to the right
Before the Industrial Revolution, living standards in the world:
A. Were relatively stagnant for long periods of time B. Were already rising significantly for many decades C. Are not known, for lack of reliable records from that period D. Were declining because of rapid increases in population