Refer to the above diagram. The marginal utility of the third unit of X is:
A) 5.
B) 4.
C) 2.
D) 1.
Ans: B) 4.
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Net foreign investment minus net foreign portfolio investment is equal to
A) the balance of trade. B) net foreign financial investment. C) net foreign direct investment. D) capital outflows.
Which, if any, of the present values below are correctly computed?
a. A payment of $1,000 to be received one year from today, with a 8 percent interest rate, has a present value of $945.45. b. A payment of $1,000 to be received one year from today, with a 9 percent interest rate, has a present value of $911.11. c. A payment of $1,000 to be received one year from today, with a 10 percent interest rate, has a present value of $905.06. d. None of the above are correct to the nearest cent.
Figure 4-12
Refer to . The supply curve S and the demand curve D1 indicate initial conditions in the market for college textbooks. A new government program is implemented that grants students a $30 per textbook subsidy on every textbook they purchase, shifting the demand curve from D1 to D2. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
Textbook buyers will receive an actual benefit of $10 from the subsidy, while textbook sellers will receive an actual benefit of $20 from the subsidy.
b.
Textbook buyers will receive an actual benefit of $20 from the subsidy, while textbook sellers will receive an actual benefit of $10 from the subsidy.
c.
Textbook buyers will receive the full $30 benefit from the subsidy.
d.
Textbook sellers will receive the full $30 benefit from the subsidy.
Which component of aggregate demand is most impacted by the foreign trade effect?
a. investment spending b. consumption c. net exports d. government purchases