The decision about how much money to hold is an application of the:
A. equilibrium principle.
B. cost-benefit principle.
C. principle of comparative advantage.
D. scarcity principle.
Answer: B
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If total utility increases from 10 to 15 for the second unit of a good consumed, the marginal utility of the second unit is 5
a. True b. False Indicate whether the statement is true or false
Which of the following would be included in the calculation of GDP?
a. an antique diamond necklace b. a new toaster c. a second-hand dress d. a mint condition 1940 baseball card
If individuals' demand in the marketplace does not reflect their true welfare:
A. the market result will be inefficient. B. total surplus will be maximized. C. consumer surplus will be negative. D. the market result will still be efficient.
A production possibilities curve indicates the
A. Combinations of goods and services an economy is actually producing. B. Maximum combinations of goods and services an economy can produce given its available resources and technology. C. Average combinations of goods and services an economy can produce given its available resources and technology. D. Maximum combinations of goods and services an economy can produce given unlimited resources.