If total utility is falling, marginal utility is:
a. positive.
b. negative
c. positive, but declining.
d. either positive or negative.
e. zero.
b
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Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real GDP is ________ than predicted by the multiplier
A) fall; larger B) fall, smaller C) rise; smaller D) fall; smaller
In voluntary exchange, if the seller of a product gains,
a. the buyer will generally lose an amount greater than the gain to the seller. b. the buyer must lose an amount equal to what the seller gains. c. someone else must lose an equal amount. d. the buyer must also gain; mutual gain provides the foundation for exchange.
Give an example of a good that would be included in the GDP and another good that would not be included in the GDP. Explain why one would be included and the other wouldn’t. Avoid using examples given in the text.
What will be an ideal response?
Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
A. excess quantity of money demanded. B. excess quantity of money supplied. C. new equilibrium interest rate. D. decrease in the demand for loans.