It has been noted that when the price of a good increases, people purchase less of the good. This is an example of
A) macroeconomic analysis.
B) irrational behavior.
C) normative economic analysis.
D) positive economic analysis.
Answer: D
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Diminishing marginal utility means that
A) Ralph will enjoy his second hamburger less than the first. B) the total utility from one hamburger exceeds the total utility from two hamburgers. C) the price of two hamburgers is twice the price of one. D) beyond a certain point, total utility decreases as income rises.
In the open-economy macroeconomic model, other things the same, which of the following both make the exchange rate fall?
a. U.S. investment demand falls and foreign demand for U.S. goods falls b. U.S. investment demand falls and foreign demand for U.S. goods rises c. U.S. investment demand rises and foreign demand for U.S. goods falls d. U.S. investment demand rises and foreign demand for U.S. goods rises
One problem associated with the gold standard was that
A) nations gave up control of their money supply. B) there was an incentive for individuals to hold gold at all interest rates. C) there was no fluctuation in exchange rates. D) nations could not determine their current account balances.
The number of seats available in a stadium is fixed at 80,000. The equilibrium price for a ticket to a football game at the stadium is $30. The equilibrium price for a ticket to a baseball game at the stadium is $20. Which of the following is true?
A. The supply of baseball games must be less elastic than the supply of football games. B. The demand for each baseball game must be lower than the demand for each football game. C. Football games must be more expensive to produce than baseball games. D. The demand for baseball games must be more elastic than the demand for football games.