For all goods other than those that are addictive, and assuming that the quantity consumed is not so large that the last units consumed generate negative marginal utilities, we can say that, for the consumer, as more of the good is consumed, its marginal utility _____ while its total utility _____
a. increases; decreases
b. decreases; increases
c. increases; increases
d. decreases; decreases
e. no general rule can be made here
B
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As the economy enters a strong expansion, then firms' demand for loanable funds
A) increases because the nominal interest rate rises. B) increases because expected profit increases. C) decreases because expected profit decreases. D) decreases because the nominal interest rate falls. E) increases because the real interest rate rises.
What is the relationship between marginal product and average product?
What will be an ideal response?
Equilibrium takes place where:
A. supply and demand intersect. B. supply is highest. C. demand is highest. D. prices are maximized.
What is it called when the government uses some tool other than money to allocate goods?
What will be an ideal response?