Marginal utility
A) characterizes things of little use.
B) is the additional utility derived from the last unit of a good consumed.
C) is an implication of the law of demand.
D) is always negative when total utility is positive and positive when total utility is negative.
B
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A common element in all of the banking crisis episodes in different countries is
A) the existence of a government safety net. B) deposit insurance. C) increased regulation. D) lack of competition.
Imports are goods and services that are produced:
A. in other countries and consumed domestically. B. domestically and consumed in other countries. C. and consumed in other countries. D. and consumed domestically.
Which of the following examples has an elastic supply curve?
a. An 8 percent increase in the price of wrenches results in a 6 percent increase in quantity supplied. b. An 11 percent increase in the price of nails results in a 15 percent increase in quantity supplied. c. A 15 percent increase in the price of plugs results in a 12 percent increase in quantity supplied. d. A 20 percent increase in the price of plywood results in a 20 percent increase in the quantity supplied.
Firms 1 and 2 compete in a Cournot duopoly. If firm 2 adopts a strategy that, inadvertently, lowers firm 1's marginal cost:
A. firm 1's reaction function will shift up. B. firm 1's reaction function will shift down. C. firm 2's reaction function will shift up. D. firm 2's reaction function will shift down.