As more of a product is consumed, total utility increases until
A) marginal utility increases at an increasing rate.
B) average utility increases at an increasing rate.
C) marginal utility is negative.
D) average utility decreases.
Answer: C
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________ occurs when a foreign firm sells its exports at a lower price than it costs to produce the goods
A) Dumping B) Comparative advantage C) Learning-by-doing D) A tariff
The Coinage Act of 1792 set the relative values of silver and gold coins at 15 to 1 . Suppose the relative market values of silver and gold had equaled 16 to 1 . In this case,
a. only gold would circulate as money. b. gold would be hoarded and sold abroad. c. gold would be overvalued at the mint. d. individuals would profit by selling gold to the mint.
The new classical model implies that a
a. budget surplus will effectively retard inflation emanating from excess demand. b. budget deficit will increase the real interest rate. c. substitution of debt for tax financing will leave aggregate demand and real output unchanged. d. planned budget deficit will be a highly effective tool to combat a recession.
Which of the following is not a major trading partner of the U.S.?
A. Canada B. Mexico C. Russia D. China