Thinking about the total utility gained from the consumption of a typical good, we can say in general that:
A. total utility will rise, peak, and then decline as more and more units are consumed.
B. total utility is maximized where the marginal utility is greatest.
C. consuming more and more units of a good will eventually cause marginal utility to increase
D. total utility increases by decreasing amounts, until it is maximized. Then it declines.
Answer: A
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If the United States imposes a tariff on the import of Japanese cars instead of a quota, the price
a. increase in Japanese cars goes into the revenue of U.S. automakers. b. increase in Japanese cars goes into the revenue of Japanese automakers. c. increase in Japanese cars goes into the revenue of the U.S. government. d. decrease in Japanese cars comes out of the revenue of U.S. automakers. e. decrease in Japanese cars comes out of the revenue of the U.S. government.
A firm should increase its investment as long as:
a. marginal resource cost exceeds the interest rate. b. marginal resource cost exceeds marginal revenue product. c. marginal rate of return on investment exceeds the interest rate. d. the interest exceeds the marginal rate of return on investment.
The Fed directly sets ________.
A. both the federal funds rate and the prime rate B. the prime rate but not the federal funds rate C. the discount rate and the prime rate D. neither the federal funds rate nor the prime rate
An outward shift of the production possibilities curve represents
A. economic recession. B. economic contraction. C. economic growth. D. economic inflation.