It is assumed that the marginal benefit of consumption
A. decreases as more units of the good are consumed.
B. remains constant as more units of the good are consumed.
C. could either increase or decrease as more units of the good are consumed.
D. increases as more units of the good are consumed.
Answer: A
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Over the previous year, 2,000 boxes of antihistamine tablets were sold at a price of $20 per box, and during the current year, 2,500 boxes of tablets were sold at $25 a box. The most likely interpretation of these data is that the
A. supply and demand curves are shifting to the right. B. supply and demand curves are shifting to the left. C. the supply curve has shifted to the left, with no change in demand. D. the demand curve has shifted to the right, with no change in supply.
Which of the following statements is false? In the circular flow model:
A) the funds needed to finance investment spending come from the saving of households. B) GDP can be measured either by the income received or by the expenditures made. C) factor payments are made to business firms. D) consumption expenditures are made by households.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls and current international transactions become more positive (or less negative). b. The quantity of real loanable funds per time period rises and current international transactions become more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Exhibit 10-8 Aggregate demand and supply
In Exhibit 10-8, if aggregate demand shifts from AD1 to AD3,
A. real GDP will increase from $3.0 to $4.0, and the price level will increase from 100 to 140. B. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 140. C. real GDP will increase from $3.0 to $4.0, and the price level does not change. D. real GDP will increase from $3.0 to $7.0, and the price level will increase from 100 to 120.