An increase in the price of product A will:
A. increase the marginal utility per dollar spent on A.
B. decrease the marginal utility per dollar spent on A.
C. not affect the marginal utility per dollar spent on A.
D. cause utility-maximizing consumers to buy more of A.
Answer: B
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Which of the following refers to diminishing marginal returns?
A) The revenue of a cell phone manufacturer decreased when it increased its product price. B) The additional output produced in a firm decreased as more workers were hired. C) The profits of an entrepreneur increased substantially after he fired a few of his employees. D) The total output of a firm decreased as more workers were hired.
Banks require collateral for loans in order to
A) ensure that borrowers have significant amounts of their own funds invested in their businesses. B) charge higher interest rates on loans. C) reduce their tax liability on the interest they collect on loans. D) reduce the total amount they are obliged to lend to any one borrower.
What are the ways a multinational corporation can reposition its funds to increase its profits?
What will be an ideal response?
Which of the following statements is true?
A) Monetarists believe that the government should be very involved in managing and directing the economy. B) Monetarists believe that the economy is self-regulating. C) There is very little difference between monetarist and Keynesian thought. D) Monetarists hold that velocity is constant. E) a and c