The marginal utility of a unit of good Y to Jane is
A. the additional utility that Jane gets from consuming one more unit of Y.
B. defined in money terms as the minimum amount Jane is willing to pay for that additional unit of Y.
C. defined in money terms as the maximum amount Jane is willing to pay for all the Y she buys except that additional unit.
D. All of the responses are correct.
Answer: A
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In monopolistic competition, product improvement and development
A) are valued by the consumer at an amount equal to the costs the producers have incurred. B) yields a marginal benefit to the producer equal to price of the good. C) is less than its efficient amount. D) None of the above answers are correct.
If the inflation rate in the United States is higher than that in Mexico and productivity is growing at a slower rate in the United States than in Mexico, then, in the long run, ________, everything else held constant
A) the Mexican peso will appreciate relative to the U.S. dollar B) the Mexican peso will depreciate relative to the U.S. dollar C) the Mexican peso will either appreciate, depreciate, or remain constant relative to the U.S. dollar D) there will be no effect on the Mexican peso relative to the U.S. dollar
Given the formula PDV = $F/(1 + R)T, the PDV is smaller when the number of years is ______ and when the interest rate is ______.
A. smaller; lower B. smaller; higher C. larger; lower D. larger; higher
The MRP of capital is measured by the change in
a. total output/change in loanable funds b. marginal physical product/change in loanable funds c. total revenue/change in loanable funds d. loanable funds/change in total revenue e. total output/change in total capital