The phrase "decreasing marginal benefit" means that
A) the more you consume of the product, the less total benefit you derive.
B) the marginal cost will be increasing as you consume more of a good.
C) each additional unit of a good you consume gives you less additional benefit than the previous unit.
D) Both answers A and B are correct.
E) Both answers A and C are correct.
C
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If the price level in Great Britain increases from 102 to 105 (holding all else constant), real wealth ________ and there is a movement ________ along Great Britain's aggregate demand curve
A) decreases; upward B) increases; upward C) decreases; downward D) increases; downward
Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 100 Japanese yen, but it finds that the value of yen is appreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?
A) Buy more Japanese goods. B) Buy U.S. dollars. C) Sell U.S. dollars. D) Encourage U.S. investments abroad.
Which of the following refers to a shift in government spending from the country's infrastructure to education and health care?
a. Capital shallowing b. Expropriation c. Liberalization d. Investment diversion e. Import substitution
Pork-barrel legislation typically bundles the pet projects of several special interest groups. Such legislation
a. is frequently enacted, even though the overall benefits to society are less than the overall costs to society. b. seldom benefits special interest groups. c. usually, if successful, helps the majority of taxpayers. d. seldom passes because social benefits are far smaller than social costs.