The principle of diminishing marginal utility says that
A) marginal utility is negative as the quantity of the good consumed increases.
B) total utility decreases as the quantity of the good consumed increases.
C) total utility increases by smaller and smaller amounts as the quantity of the good consumed increases.
D) total utility increases by larger and larger amounts as the quantity of the good consumed increases.
C
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Entrepreneurial profits are very low because entrepreneurs are generally overly
A. pessimistic and receive psychological rewards for their work. B. pessimistic and incur psychological costs from their work. C. optimistic and receive psychological rewards for their work. D. optimistic and incur psychological costs from their work.
If the demand curve for money were horizontal at some interest rate, an increase in the money supply
A) would lower the interest rate. B) would increase the rate of inflation. C) would be highly effective in reducing inflation. D) would not change the interest rate
Suppose the United States is experiencing a balance of payments deficit. To prevent the exchange rate from depreciating, the U.S. Treasury must:
A. sell foreign currency and buy dollars. B. sell dollars and buy foreign currency. C. sell both dollars and foreign currency. D. buy both dollars and foreign currency.
(a) Find the total profit or total loss of the firm shown in the graph below. (b) Is the firm in short run or long run? (c) How much is the firm's most efficient output? (d) What is the lowest price the firm would accept in the long run?
