As an individual earns additional income, the marginal utility of income tends to
A. Decrease.
B. Increase.
C. Remain constant.
D. Shift toward the origin.
Answer: A
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Per-capita income of a country is determined by ________
A) multiplying its gross domestic product by the total number of goods produced during that year. B) dividing its gross domestic product by the total population of the country during that year. C) multiplying its gross domestic product by the total population of the country during that year. D) dividing its gross domestic product by the total number of goods produced during that year.
One reason purchasing power parity does not exactly hold is that many goods are not traded internationally
Indicate whether the statement is true or false
Refer to the accompanying figure.
If Zeynep's current budget constraint is BC2, and her budget for ham sandwiches and cheese sandwiches is $120, then the price of a cheese sandwich is:
A. $12. B. $6. C. $2. D. $9.
How can the demand for one good be affected by increased demand for another one?
(A) When goods are bought together, increased demand for one will decrease demand for the other. (B) A drop in price for a good will increase demand for the good and its substitute. (C) If goods are used together, increased demand for one will increase demand for the other. (D) If goods are substitutes for each other, increased demand for one will increase demand for the other.