Assume that Juan concludes that he should eat less and play video games more. In this situation, it must be TRUE that the marginal utility of the last dollar spent on food is
A) more than the marginal utility of the last dollar spent on video games.
B) less than the marginal utility of the last dollar spent on video games.
C) equal to the marginal utility of the last dollar spent on video games.
D) negative and less than the marginal utility of the last dollar spent on video games.
Answer: B
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Demand-side inflation is normally accompanied by
A. falling real GDP, while supply-side inflation may be accompanied by rising real GDP. B. falling real GDP; the same is true of supply-side inflation. C. rising real GDP, while supply-side inflation may be accompanied by falling real GDP. D. rising real GDP; the same is true of supply-side inflation.
Competitive markets with no external costs or benefits and no government price ceilings, floors, taxes or subsidies ________ efficient. According to the "It's not fair if the rules aren't fair" idea of fairness, competitive markets ________ fair
A) are; are B) are; are not C) are not; are D) are not; are not
Demand is said to be elastic when percentage changes in quantity demanded are
a. less than the percentage changes in price. b. higher than the percentage changes in price. c. equal to the percentage changes in price. d. zero when price changes.
The net effect of checks in the process of collection represents
a. payment float b. availability float c. net float d. cash in hand e. none of these