How would an economist represent the concept of diminishing marginal utility graphically?
a. a line with a positive slope
b. a line with a negative slope
c. a horizontal line
d. a vertical line
b. a line with a negative slope
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In the IS-MP model, when the Fed increases the real interest rate
A) the MP curve shifts up resulting in a decline in the output gap. B) the MP curve shifts up resulting in an increase in the output gap. C) the MP curve shifts down resulting in a decline in the output gap. D) the MP curve shifts down resulting in an increase in the output gap.
Which of the following is a characteristic of a competitive price-taker market?
a. Profit maximizing firms in the market will expand output until price equals average variable cost. b. The market demand curve for the product is a horizontal line. c. There are many firms in the market, each producing a small share of total market output. d. The product produced by each of the firms is differentiated.
A toll of $1 per car is imposed on a road regardless of time of day. If the toll creates equilibrium travel flows at the busiest time of day, it will create a __________ at all other times
A) surplus of space B) shortage of space C) zero money price for space D) zero opportunity cost for space
Which of the following least resembles a case of taste-based discrimination?
A) Julian does not like redheads because they remind him of the clowns that terrified him at the circus when he was young, so he refuses to hire any redheads to work for him. B) Alyssa will not hire anyone under the age of 30 because she believes young people are basically lazy and irresponsible. C) Martin hates Scandinavians so he refuses to hire anyone who has blond hair and blue eyes. D) Lorena does not like a single thing about men, she does not want to be around men, and refuses to even acknowledge their existence. It comes as no surprise that she will not hire any men to work at her restaurant.