Total utility means that each marginal unit of a consumed good provides less of an addition to utility than the previous unit
a. True
b. False
Indicate whether the statement is true or false
False
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The government passes a law which doubles the wages of all workers. Aggregate supply will ________, and real GDP will ________, and the price level will ________
A) increase; remain the same; increase. B) remain the same; increase; increase. C) increase; increase; remain the same. D) decrease; increase; increase. E) decrease; decrease; increase.
Claire was trying to decide if she should buy a share of stock in her favorite company or a bond issued by that same company. She discussed the dilemma with her father. Her father made the following five statements. All of them are accurate except for one. Which one is the exception?
a. "If you buy a share of stock you will own a piece of the company" b. "If you buy a bond you will own a piece of the company" c. "If you buy a bond and change your mind you can sell it on the secondary bond market" d. "You should be careful because if you buy a share of stock you could loose your original investment" e. "If you buy a stock it may be worth more in the future"
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
We expect firms with ________ to sell marketable pollution permits to firms with ________.
A. low abatement costs; high abatement costs B. high abatement costs; low abatement costs C. high price goods; low price goods D. high production capacity; low production capacity