Marginal utility is
A. the utility obtained from the consumption of all but the last unit of a good.
B. the change in utility that results from increasing the amount of a good consumed by one unit.
C. the relative value of two goods when a utility-maximizing decision has been made.
D. the change in the amount of a good consumed that increases total utility by one unit.
Answer: B
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Which of the following is true?
A. Twenty-five percent of Americans were officially unemployed in 1933. B. The United States' economy expanded steadily from 1933 to 1937. C. Once the Great Depression began in 1929, the United States' economy moved steadily downhill until 1933. D. All of the choices are true.
Hyperinflations are usually caused by large budget deficits financed by
A) selling bonds to private investors. B) selling bonds to the central bank. C) raising taxes. D) borrowing from commercial banks.
In a market where one unit of labor produces one unit of output, consumers prefer
A) a competitive labor market and a monopoly output market. B) a competitive output market and a monopoly labor market. C) a monopoly output market and a monopoly labor market. D) None of the above—they are indifferent between A and B.
If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic, a $1 specific tax imposed on the sellers of this good will
A) shift the supply curve up vertically by $1. B) shift the demand curve down vertically by $1. C) not raise price at all. D) cause price to increase but by less than $1.