Which of the following is true?
a. A good for which the marginal utility of the last unit of a good consumed is greater will provide more total utility from consumption of the good.
b. If marginal utility is positive but diminishing, total utility increases with consumption of a good
c. If marginal utility is diminishing, total utility must be diminishing.
d. Total utility is equal to the change in marginal utility from consuming an added unit of a product.
b
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When the Fed extends loans to depository institutions
A) it increases the level of reserves. B) it decreases the level of reserves. C) it reduces the total value of the assets on its balance sheet. D) it reduces the total value of the liabilities on its balance sheet.
Investment is lowered by expansionary monetary policy
a. True b. False Indicate whether the statement is true or false
In the U.S. GDP, imports
A. Are the total of U.S. goods sent abroad. B. Include black-market goods. C. Are goods purchased from foreign sources. D. Include smuggled goods.
If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 6 units of software and 4 units of hardware, then
A. the United States has a comparative and absolute advantage in both goods. B. China has a comparative advantage in hardware and the U.S. has a comparative advantage in software. C. China has a comparative and absolute advantage in both goods. D. the United States has a comparative advantage in both goods.