Kumiko is not at her consumer equilibrium because she sees too many movies and buys too few books. As she moves toward her consumer equilibrium, her marginal utility from movies will ________ and her marginal utility from books will ________
A) decrease; decrease
B) increase; decrease
C) decrease; increase
D) increase; increase
B
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Discuss the effects of ongoing inflation based on the PPP theory
What will be an ideal response?
If at its current production level, a perfectly competitive firm's marginal revenue and long-run marginal cost are equal to $5 and its long-run average cost is $4, which of the following statements is true?
A) The firm should expect the market price of its product to increase. B) The firm should expect the market price of its product to fall. C) The firm should expect to earn positive economic profit indefinitely. D) The firm should expect the market supply curve to decrease.
What most accurately describes the U.S. compared to other nations in the early 1900s?
a. The U.S., which was still quite young, was one of the least productive nations in the world in both the agricultural and manufacturing sectors. b. The U.S., Great Britain and Germany were the three most industrialized nations. c. The industrial output in the U.S. was about average compared the rest of the nations in the world. d. The U.S., which had large supplies of land, had a highly productive agricultural sector, but its industrial productivity was quite low relative to that of other nations.
An increase in a balance of trade surplus tends to:
A. exert an expansionary effect on the economy. B. exert a contractionary effect on the economy. C. occur when a country's exports are too expensive. D. occur when a country's exchange rate is too high.