When marginal utility is positive but decreasing, total utility is
A) decreasing.
B) negative.
C) increasing.
D) zero.
Answer: C
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Less-developed countries often have low economic growth rates because of
a. low population growth rates and poor infrastructure b. low current output per capita, high population growth rates and good infrastructure c. low current output per capita, high population growth rates and poor infrastructure d. low current output per capita, low population growth rates and poor infrastructure e. low current output per capita and poor infrastructure
Which type of demand for money causes the demand for money curve to slope downward?
A. speculative demand B. precautionary demand C. transactions demand D. foreign-exchange demand
Suppose that the economy is at its long-run equilibrium and the government increases its purchases. Which will NOT occur as the economy moves back to its long-run equilibrium?
The unemployment rate does not tend to fall as soon as the economy pulls out of a recession. Which of the following best explains this?
A. During recessionary periods, firms switch to more capital-intensive production techniques, so they do not need to increase employment as the economy pulls out of the recession. B. Firms are holding excess labor, so as the economy pulls out of the recession, firms do not need to hire new workers immediately. C. Firms' optimism about the state of the economy increased prior to the economy pulling out of the recession, so firms increased their employment earlier. D. Firms are not able to find qualified workers to fill the job vacancies.