The table above gives Cathy's total utility from Mt. Dew. Cathy's marginal utility from additional Mt. Dews is
A) diminishing.
B) increasing.
C) constant.
D) negative.
A
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When differences between nominal GDP and real GDP result due to price changes and nothing else is compared, an index is created called the
A) consumer price index. B) index of leading indicators. C) GDP deflator. D) inflation index.
If Claire's reservation price on a sweater is $37, which of the following prices would she have to observe in the market in order to buy a sweater?
A. $37.01 B. $38.00 C. $37.00 D. Claire would not buy a sweater at any of these prices.
The core problem faced by all economic systems is that
a. scarcity forces each of us to make choices b. the government must intervene to allocate scarce resources c. of matching people's wants with their needs d. of allocating unlimited resources e. it needs to maximize each household's material standard of living
If the demand decreases in a perfectly competitive market, firms will likely:
A. exit the market in hopes of capturing profits elsewhere. B. experience negative profits in the short run. C. experience zero profits in the long run. D. All of these are true.