As more satisfaction is achieved from consuming a good with diminishing marginal utility, then total utility
A. Increases at a decreasing rate.
B. Is negative as long as marginal utility is decreasing.
C. Decreases as long as marginal utility is negative.
D. Decreases as long as marginal utility is positive.
Answer: A
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Under the Bretton Woods agreements,
a. the IMF was created to punish countries that did not maintain fixed exchange rates. b. a system of fixed exchange rates based on gold was established. c. each country agreed to buy and sell its currency to maintain a fixed exchange rate. d. All of the above are correct.
Suppose the following: (1 ) the wage rate rises, (2 ) the interest rate rises, (3 ) any change in AD is greater than any change in SRAS. Based on this information, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; rise C) fall; fall D) rise; fall
The tools of monetary policy for altering the reserves of commercial banks are the:
a. Tax rate and level of government spending b. Public debt, budget surplus, and budget deficit c. Discount rate, reserve ratio, and open-market operations d. Consumer price index and unemployment rate
When a worker's nominal wage is indexed, the nominal wage is usually automatically adjusted based on movements in which of the following variables?
A) productivity B) the price of the firm's product C) the average wage in the country D) the average wage in the industry E) none of the above