The table above shows the total utility from the two goods Freddy likes to consume. If Freddy has consumed 4 fruit drinks and then decides to drink another
A) his total utility will increase.
B) the marginal utility from the 5th drink equals 30.
C) the marginal utility from the 5th drinks equals 50.
D) Both answers A and B are correct.
D
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If the price of Pepsi increases, then there will be ________ of Pepsi.
A. a decrease in the supply B. a decrease in the quantity supplied C. an increase in the supply D. an increase in the quantity supplied
Which of the following statements is true?
A. Special interest groups are more likely to push for policies that increase the size of the economic pie than to increase their slice of the pie. B. Special interest groups are likely to push for policies that increase the size of their slice of the economic pie even if it means that the overall size of the economic pie will shrink. C. Special interest groups are more likely to favor policies that increase the size of their slice of the economic pie than policies that favor economic growth. D. a and c E. b and c
In order to have a stable economy, what is the necessary relationship between income and spending? What must then be the relationship between leakages and injections?
What will be an ideal response?
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the left. b. Start the analysis in the real goods market with aggregate demand shifting to the right. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.