If marginal utility is a positive number:
a. the more you purchase, the more total utility you get
b. the more you purchase, the less total utility you get
c. utility is not affected by more purchases
d. none of these is correct
a
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Suppose the government cuts taxes. We would expect interest rates to ________ and the dollar to ________ in foreign exchange markets
A) rise; depreciate B) fall; appreciate C) rise; appreciate D) fall; depreciate
Consider a market that is in equilibrium. If it experiences both a decrease in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium:
A. price and quantity will both rise. B. quantity will definitely fall, while the equilibrium price cannot be predicted. C. price will definitely fall, while the equilibrium quantity cannot be predicted. D. price and quantity will both fall.
The health services market differs from many others in that, because of insurance, the consumer often pays only a fraction of the direct cost of care
a. True b. False Indicate whether the statement is true or false
Firms in a perfectly contestable market will earn higher profits than firms in markets that are not perfectly contestable.
Answer the following statement true (T) or false (F)