Refer to the accompanying figure. Total utility increases with each additional pizza up to the ________ and then declines, but marginal utility ________ with each additional pizza consumed.
A. 7th pizza; increases
B. 6th pizza; decreases
C. 5th pizza; stays the same
D. 6th pizza; increases
Answer: B
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In the Keynesian view, equilibrium takes place when
a. the real and nominal interest rates are equal. b. the level of total spending in the economy is equal to current output. c. current output is equal to the economy's long-run potential. d. the money supply is growing at a constant rate.
The foreign exchange system that has the highest foreign exchange risk is
A) the dirty floating exchange rate. B) the fixed exchange rate. C) the floating exchange rate. D) the Bretton Woods system.
Which of the following is the equation for determining an expected value?
A. (1 - Risk factor) × PDV. B. (1 - Risk factor) ÷ PDV. C. (Risk factor - 1) × PDV. D. (Risk factor - 1) ÷ PDV.
Which is not characteristic of a product with relatively inelastic demand?
A. The good is regarded by consumers as a necessity. B. Buyers spend a small percentage of their total income on the product. C. There are a large number of good substitutes for the good. D. Consumers have had only a short time period to adjust to changes in price.