According to the principle of diminishing marginal utility, as an individual consumes more and more of a good or service, the total utility increases while the marginal utility decreases
Indicate whether the statement is true or false
TRUE
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The interest-rate-based transmission mechanism for monetary policy in the Keynesian system indicates that
A) decreases in the money supply lead to increases in the interest rate, which increases investment, which increases the level of real GDP. B) increases in the money supply cause people to spend more, leading to increases in real GDP. C) increases in the money supply lead to decreases in the interest rate, which decreases investment, which decreases the level of real GDP. D) increases in the money supply lead to decreases in the interest rate, which increases investment, which increases the level of real GDP.
Distinguish between physical capital and financial capital and give two examples of each
What will be an ideal response?
The Social Security system is financed by
A) a tax on individual retirement accounts. B) a payroll tax paid only by employers. C) a payroll tax paid by both employers and employees. D) a tax on luxury goods.
In 2009, high-income economies with only about one eighth of the world's population produced almost three-fourths of the worlds output
a. True b. False