The marginal utility gained from the consumption of successive units of a typical good:
A. tends to increase.
B. tends to decrease.
C. tends to stay the same.
D. may increase or decrease depending on the cost of the good.
Answer: B
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Refer to Scenario 2. The marginal cost of the sixth unit of output is:
A) $1.33. B) $7.50. C) $8.00. D) $45.00.
Firms often use patent rights as a:
A) barrier to exit. B) barrier to entry. C) way to achieve perfect competition. D) none of the above
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and current international transactions in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and current international transactions become more positive (or less negative). b. The quantity of real loanable funds per time period rises, and current international transactions become more negative (or less positive). c. The quantity of real loanable funds per time period and current international transactions remain the same. d. The quantity of real loanable funds per time period rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
According to the law of demand, a demand curve:
a) Is downward sloping. b) Is upward sloping. c) Can slope either upward or downward based on consumer behavior. d) Is a horizontal, or flat, line.