If Pete enjoys his first pancake of the morning much more than his fifth pancake of the morning, he is exhibiting
A) utility maximizing behavior.
B) diminishing marginal utility.
C) irrational behavior.
D) diminishing total utility.
B
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Refer to Table 9-3. Assume the market basket for the consumer price index has three products — Cokes, hamburgers, and CDs — with the following values in 2011 and 2016 for price and quantity: The Consumer Price Index for 2016 equals
A) 75. B) 93. C) 108. D) 121.
The key concept in the new classical approach to the aggregate supply curve is
A) the impact of imperfect information on business decisions. B) the impact of changes in the price level on real balances. C) the inverse relationship between the real interest rate and desired investment spending. D) the crowding out of investment spending by government spending.
A firm with two factories, one in Michigan and one in Texas, has decided that it should produce a total of 500 units of output in order to maximize profit. The firm is currently producing 200 units in the Michigan factory and 300 units in the Texas factory. At this allocation between plants, the last unit of output produced in Michigan added $5 to total cost, while the last unit of output produced in Texas added $3 to total cost. If the firm produces 201 units in Michigan and 299 units in Texas instead:
A. total cost will decrease $2 B. total cost will decrease $3 C. profit will increase $2 D. both a and b E. none of the above
Which of the following is NOT a criticism that has been leveled at the World Bank?
A. Despite receiving loans from the World Bank, economic growth in many client nations has been disappointing. B. Too many loans go to nations capable of privately financing their projects. C. Some countries receiving World Bank loans are net lenders of funds to other nations and so should not be receiving World Bank funds. D. Since 1990, the World Bank has loaned mostly to African countries, to the detriment of nations in other parts of the world.