Refer to the graph shown. Between points C and D, marginal utility is:
A. positive, and so total utility is increasing.
B. decreasing, and so total utility is falling.
C. positive, and so total utility is falling.
D. decreasing, and so total utility is at its maximum.
Answer: A
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Suppose a 20 percent increase in the price of gasoline results in a 25 percent increase in the quantity supplied. This response means that gasoline has
A) an elastic supply. B) an inelastic supply. C) a unit elastic supply. D) an inelastic demand. E) an elastic demand.
An increase in the government budget deficit will not lead to a current account deficit if domestic investment declines
Indicate whether the statement is true or false
Suppose Larry's Lariats produces lassos, and uses nine feet of rope to make each lasso. The rope is put into a machine that automatically cuts it to the right length, then seals the ends to prevent fraying. The rope is then hand tied, dipped, and wound before being placed in a packaging machine to prepare it for retail sale. The total costs for this company would include:
A. the cost of rope. B. employee's wages. C. the rope-cutting machine. D. All of these expenses would be included in total cost.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C