Which of the following is descriptive of the law of diminishing marginal utility?
A) The third hamburger consumed provides less utility than the second hamburger consumed.
B) The third hamburger is priced higher than the first hamburger.
C) As price falls, quantity demanded rises, ceteris paribus.
D) The price of a good rises as the costs of producing that good rise.
E) none of the above
A
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What is always true at the quantity at which average total cost equals average revenue?
a. economic profit is zero b. marginal cost equals marginal revenue c. economic profit is maximized d. revenue is maximized e. cost is minimized
What is the ECB prohibited from doing in the Eurozone?
A) raising tariffs on goods from nonmember countries B) directly financing member countries fiscal deficits C) increasing interest rates D) decreasing interest rates
Based on the information in the table, what quantity of reserves would the Federal Reserve have had to inject into the economy in 1932 to prevent the money supply from falling, given that the public increased the amount of currency it held and that banks increased the reserve-deposit ratio? Currency held by public(in billions)Reserve-deposit ratioBank reserves (in billions)Money supply (in billions)December 1931$4.590.095$3.11$37.3December 1932$4.820.109$3.18$34.0
A. $0.30 billion B. $0.66 billion C. $3.54 billion D. $0.89 billion
When the calculated price elasticity of demand is -0.85, demand is
A) perfectly inelastic. B) elastic. C) unit-elastic. D) inelastic.