When Bruce increases the consumption of Good X and decrease the consumption of Good Y, his marginal utility of
A. both X and Y will decrease.
B. both X and Y will increase.
C. X falls and the marginal utility of Y will increase.
D. X increases and the marginal utility of Y will fall.
Answer: C
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Use the figure below to answer the following question.
The diagram concerns supply adjustments to an increase in demand (D1 to D2) in the immediate period, the short run, and the long run. In the immediate period, the increase in demand will
A. increase equilibrium quantity but not equilibrium price. B. increase equilibrium price but not equilibrium quantity. C. increase both equilibrium price and quantity. D. have no effect on either equilibrium price or quantity.
There is a negative relationship between the real rate of interest and investment spending
Indicate whether the statement is true or false
Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
a. Prices were used to allocate resources. b. Prices played the same role as in a market economy. c. Prices were used to ration final goods and services but not to allocate resources. d. None of these statements is descriptive.
From 2000 to 2010, the GDP in Country A increased by 50 percent and inflation rose by 75 percent. Considering this example, which of the following conclusions is most likely accurate?
a. Country A had a fluctuating economy. b. Country A had a stable economy. c. Country A had economic growth. d. Country A had economic problems.