Which of the following most clearly illustrates the law of diminishing marginal utility?
a. The total satisfaction from consuming a good falls as more of the good is consumed.
b. Marginal utility falls as total utility falls.
c. The quantity of a good demanded falls as its price rises.
d. The additional satisfaction from consuming a good falls as more of the good is consumed.
e. There is a direct relationship between the price of a good and its total utility.
D
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All of the following are non-price factors that influence demand except:
A) tastes and preferences. B) quantity supplied. C) income. D) the prices of related goods.
Suppose an item sells for $125 in the United States and for 62,500 pesos in Chile. According to the law of one price, the nominal exchange rate (pesos/dollar) should be ________
A) 31,313 B) either $125, or 62,500 pesos, but not both C) 0.002 D) 500
The "Made in the USA" campaign was popularized by unions in an effort to influence which determinant of demand?
A. Incomes B. Preferences C. Expectations of future prices D. Prices of related goods
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency rises. b. The quantity of real loanable funds per time period falls, and nominal value of the domestic currency rises. c. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency remains the same. d. The quantity of real loanable funds per time period rises, and nominal value of the domestic currency falls. e. There is not enough information to determine what happens to these two macroeconomic variables.