Assuming that the marginal utility of wealth diminishes implies that
A) you have more total utility with $100 than with $1,000.
B) you have more total utility with $1,000 than with $1,001.
C) an additional dollar increases your total utility more if you only have $100 than if you have $1,000.
D) an additional dollar does not increase your total utility regardless of your wealth.
C
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A vertical demand curve for a particular good implies that consumers are
A) sensitive to changes in the price of that good. B) not sensitive to changes in the price of that good. C) irrational. D) not interested in that good.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The marginal rate of transformation in moving from Point B to Point A is
A. -2/3. B. -3/4. C. -1.5. D. -20.
A firm's demand for labor is referred to as a derived demand because
A. The quantity of goods and services labor can purchase is derived from the wages labor receives from the firm. B. It is derived from the supply of labor. C. It is derived from the MPP of labor. D. It is derived from the demand for the product that the labor is producing.
If both borrowers and lenders become discouraged by difficult-to-predict inflation:
A. it will become more difficult for financial intermediation to generate and coordinate savings with investment. B. the excess supply of loanable funds will drive real interest rates higher and higher. C. the velocity of money will increase, leading to higher unemployment and lower real GDP. D. the federal reserve will have to respond by sharply increasing the money supply.