Exhibit: Utility) Total utility is maximized at the _______ unit.
a. first
b. second
c. fourth
d. sixth
Units
0
1
2
3
4
5
6
7
Total Utility
0
20
35
45
50
50
45
35
Reference: Ref 7-1
c. fourth
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Why is the marginal benefit of cleaning up pollution downward sloping?
A. The benefit can only be seen if you clean large amounts of pollution so there is little marginal benefit otherwise. B. At first cleaning pollution makes a big difference but there are diminishing marginal returns for subsequent efforts. C. At first you see small effects to cleaning but then see larger differences because of diminishing marginal returns. D. Cleaning up pollution continues to cost the citizens in the area more and more.
Consider a firm with the following cost and revenue information: ATC = $20, AVC = $10, and P = MR = $30 . If the firm follows the rule to maximize profits, its output level is 3 . Therefore MC equals
a. $20 b. $10 c. $30 d. $90 e. $3
Assume that the central bank lowers the discount to increase the nation's monetary base. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. The quantity of real loanable funds per time period falls and real GDP falls. b. The quantity of real loanable funds per time period rises and real GDP rises. c. The quantity of real loanable funds per time period rises and real GDP remains the same. d. The quantity of real loanable funds per time period and real GDP remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Those who favor government policies to stimulate the economy by creating incentives for individuals and businesses to increase their productive efforts are supporting:
A. supply-side economics. B. Keynesian economics. C. monetarist economics. D. Marxian economics.