If you could pay for a product according to the marginal utility that you gain from additional consumption, then as you consume more of a product the price you pay would
A) remain the same.
B) increase.
C) be deferred.
D) decline.
Answer: D
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The value of U.S. imports is ________.
A. added to exports when calculating GDP, because imports reflect spending by Americans B. subtracted from exports when calculating GDP, because imports do not constitute production in the United States C. subtracted from exports when calculating GDP, because imports do not constitute spending by Americans D. added when calculating GDP, because imports do not constitute production in the United States
An important assumption made when constructing a demand curve is that
A. only price and quantity matter in determining the demand for a good. B. people always want a certain amount of the good. C. demand is always dependent on the supply of a good. D. all other determinants of demand are held constant. E. the demand curve has a positive slope.
In the long run, a perfectly competitive firm is expected to generate either an economic profit or an economic loss
a. True b. False Indicate whether the statement is true or false
According to the quantity equation, if M increases by 3 per cent and V increases by 2 per cent, then:
A. real income increases by approximately 5 per cent. B. the price level increases by approximately 5 per cent. C. the nominal interest rate increases by approximately 5 per cent. D. nominal income increases by approximately 5 per cent.