Which of the following statements about marginal utility is correct?
a. When marginal utility is negative, an increase in the quantity will increase total utility.
b. When marginal utility is decreasing, an increase in quantity will decrease total utility.
c. When marginal utility is positive, an increase in quantity will decrease total utility.
d. When marginal utility is zero, an increase in quantity will leave total utility unchanged.
e. When total utility is increasing, marginal utility will be negative.
d
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What will be an ideal response?
If the Fed buys U.S. government bonds from the public, it
A) increases the volume of reserves in the banking system and the money supply tends to grow. B) decreases the volume of reserves in the banking system and the money supply tends to grow. C) increases the volume of reserves in the banking system and the money supply tends to fall D) decreases the volume of reserves in the banking system and the money supply tends to fall.
A 4% decline in the price of laser printers causes the quantity demanded to rise by 8%. The demand for laser printers is
A. perfectly elastic. B. elastic. C. unit elastic. D. inelastic.
The return on wealth is
A) a stock variable. B) income. C) equal to the opportunity cost of holding capital. D) a stock or flow variable depending upon whether the wealth is in the form of bonds or other financial assets.