Using the utility-optimizing model, which of the following would induce a consumer to increase consumption of good A, a normal good?
A. an increase in the marginal utility of A
B. a decrease in the total utility of B
C. a decrease in income
D. an increase in the marginal utility of good B
Answer: A
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The short run Phillips Curve shows there is ________ relationship between the unemployment rate and the rate of inflation.
A. a positive B. a constant C. a negative D. no
A bowed outward production possibilities frontier occurs when
A) opportunity costs are constant. B) resources are not scarce. C) as more of a good is produced, producing additional units of it require greater reductions in the other good. D) the society is operating on the production possibilities frontier.
Most private medical insurance is provided through employers as a benefit to their employees.
A. True B. False C. Uncertain
In the 1990s, the price level in Japan fell relative to the price level in the United States. If the exchange rate did not change, one would expect that:
A. both U.S. exports to Japan and U.S. imports from Japan would rise. B. U.S. exports to Japan would decline and U.S. imports from Japan would rise. C. both U.S. exports to Japan and U.S. imports from Japan would fall. D. U.S. exports to Japan would rise and U.S. imports from Japan would decline.