When total utility is at a maximum, marginal utility is:
A. zero.
B. positive.
C. negative.
D. one.
Answer: A
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A time series graph reveals whether there is a ________ , which represents ________
A) trends in two variables; unrelated variables B) relationship between two variables; a trend in a variable C) cross-section relationship; a general tendency for the variables to rise or fall D) trend in a variable; a general tendency for the variable to rise or fall E) relationship between two variables; a cross-section relationship
Consider the following five investments. If the nominal interest rate is five percent, which projects should be undertaken? (Note: The returns are for one period later.)
Investment Cost Returns A $100 $106 B 300 313 C 200 218 D 50 55 E 400 418
If inflation in the United States is higher than inflation in other countries, what will be the effect on net exports for the United States?
A) Net exports will decrease as U.S. imports decrease. B) Net exports will rise as U.S. imports decrease. C) Net exports will rise as U.S. exports increase. D) Net exports will decrease as U.S. exports decrease.
The perfectly competitive firm maximizes profits when
A) it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest. B) it produces and sells the quantity at which marginal revenue and marginal cost are equal. C) it produces and sells the quantity at which the difference between average revenue and average cost is the greatest. D) it produces and sells the quantity at which the difference between price and average cost is the greatest.