As more bananas are consumed, marginal utility decreases at
a. the same rate for all people, approaching but never reaching zero
b. the same rate for all people, and eventually becomes negative
c. different rates for different people, and for everyone, it approaches but never reaches zero
d. different rates for different people, and eventually, for everyone, it becomes negative
e. different rates for different people, and eventually reaches zero where it remains (it cannot be negative)
D
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The quantity theory of money assumed
A) that an increase in prices causes a proportionate increases in real GDP. B) a fall in the velocity of money causes a proportionate increase in the money supply. C) a rise in money supply causes a proportionate fall in velocity. D) the fraction of income people desire to hold in the form of money is a constant.
In an economy with higher and more variable inflation, the new classical model would predict that the short run aggregate supply curve would
a. be horizontal. b. be more horizontal. c. be steeper. d. shift more rapidly.
Suppose pigs (P) can be fed corn-based feed (C) or soybean-based feed (S) such that the production function is P = 2C + 5S. The expansion path depends
a. on the price of corn-based feed only. b. on the price of soybean-based feed only. c. on neither the price of corn-based or soybean-based feed. d. on whether the price of corn-based feed is greater than or less than 2/5 the price of soybean-based feed.
Ford F-150 trucks, Production of this good is likely to fluctuate _____ fluctuations of real GDP during the business cycle.
Fill in the blank(s) with the appropriate word(s).