Economists are able to determine total utility by:
A. multiplying the marginal utility of the last unit consumed by the number of units consumed.
B. summing up the marginal utilities of each unit consumed.
C. multiplying the marginal utility of the first unit consumed by the number of units consumed.
D. multiplying the marginal utility of the last unit consumed by the unit price.
Answer: B. summing up the marginal utilities of each unit consumed.
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In Figure 4-6 above, with IS0 shifting to IS1 against the upward-sloping LM curve, crowding-out is the result that
A) income stays at YO3. B) income rises to Y1 instead of to Y2. C) income rises to Y1 instead of staying at YO3. D) income rises to Y2 instead of to Y1.
Explain briefly why U.S. Steel prefers to own its mines, enrichment facilities, and ore carriers
If a tax is progressive, the average tax rate
a. remains the same as income rises. b. rises as income rises. c. falls as income rises. d. falls with passage of time.
Using a fixed exchange rate to undervalue your currency:
A. will increase your exports. B. makes imports very expensive for your citizens. C. will encourage capital flow to countries other than your own. D. All of these statements are true.