Diminishing marginal utility implies that as an individual consumes more of a good, beyond some point another unit will add:
A. the same pleasure as the preceding unit.
B. more pleasure than the preceding unit.
C. more units of utility than the preceding units.
D. less pleasure than the preceding unit.
Answer: D
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A & H Deliveries earned about $500,000 less than usual this year because of a downturn in the economy. The company also had to pay $200,000 less in taxes this year because their income and payroll were smaller. The decrease in taxes A & H had to pay during the downturn is an example of _____.
a. the crowding-out effect b. automatic stabilization c. discretionary policy d. a recognition lag
In which part of the business cycle is the Federal Reserve most likely to increase the discount rate to discourage banks from borrowing?
A) trough B) expansion C) peak D) recession E) depression
The money supply will tend to fall when which of the following occurs?
A) a central bank sale of bonds B) a decrease in the ratio of reserves to deposits C) a shift in public preferences away from currency to checkable deposits D) all of the above E) none of the above
In terms of absolute dollar volume, the world's leading export nations are:
A. Germany, the United States, and China. B. the United States, Japan, and Canada. C. Japan, China, and the United Kingdom. D. Japan, the United States, and France.