One might argue that French chefs understand the law of diminishing marginal utility better than American chefs because
a. French chefs are able to price their meals higher than American chefs
b. the French serve many courses of small portions, keeping the marginal utility of each one high
c. the French focus on large portions and unlimited trips to the salad bar, keeping total utility high
d. the only way to get people to eat American cuisine is to keep prices very low, suggesting a low
marginal utility
e. the waiters in French restaurants are instructed to help customers to equate the MU/P among different menu items by carefully explaining the various choices
b. the French serve many courses of small portions, keeping the marginal utility of each one high
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Which of the following statements is (are) correct? There is agreement between the Keynesians and monetarists that
a. an increase in aggregate demand will increase both output and price in the short run. b. there is a trade-off between inflation and unemployment in the short run. c. in the long run, when the expected price level also has time to adjust, output will not be affected by changes in aggregate demand. d. All of the above e. None of the above
Which of the following is the main reason for externalities?
A) The full cost of a transaction is not borne by the buyer/seller of the product. B) Police enforcement of scalping is not uniformly enforced. C) the lack of organized exchanges for all goods and services D) The production of public goods uses up scarce resources.
An example of a time series data set is one for which the:
a. data would be collected for a given firm for several consecutive periods (e.g., months). b. data would be collected for several different firms at a single point in time. c. regression analysis comes from data randomly taken from different points in time. d. data is created from a random number generation program. d. use of regression analysis would impossible in time series.
The sequence from largest (in terms of value, e.g., billions $) to smallest would be
a. M1, M2, M3 b. M2, M3, M1 c. M3, M2, M1 d. M3, M1, M2 e. M1, M3, M2