The fact that a gallon of gasoline commands a higher market price than a gallon of water indicates that
a. gasoline is an economic good but water is not.
b. the marginal utility of gasoline is greater than the marginal utility of a gallon of water.
c. the average utility of a gallon of gasoline is greater than the average utility of a gallon of water.
d. the total utility of gasoline exceeds the total utility of water.
B
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An increase in the U.S. price level will: a. decrease U.S. exports
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a. True b. False Indicate whether the statement is true or false
If the saving function is of the form [S = -15 + 0.4Y], consumption at an income level of 200 is
A. 80. B. 105. C. 135. D. 185.