When a consumer shifts her purchases from product X to product Y, the marginal utility of
A) X falls and the marginal utility of Y will increase.
B) both X and Y will decrease.
C) X increases and the marginal utility of Y will fall.
D) both X and Y will increase.
Answer: C
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Both the ________ do not put a great deal of emphasis on the capital account
A) absorption and monetary approaches B) monetary and elasticities approaches C) elasticities and absorption approaches D) None of the above
When an effluent fee is put in place,
a. all polluting sources will abate the same number of units, regardless of cost differences b. cost savings can be realized c. an efficient solution is assured d. each polluting source reduces effluents to zero to avoid the fee
Assume that the central bank tries to reduce unemployment by reducing the discount rate for banks. Which of the following unwelcome effects is not a side effect of this measure?
a. Higher inflation rates. b. Declining nominal exchange rate c. Crowding out. d. All of the above are side effects of a reduced discount rate.
When quantity supplied is greater than quantity demanded, there is a ____________.
Fill in the blank(s) with the appropriate word(s).