A person should consume more of something when its marginal:
A. benefit exceeds its marginal cost.
B. cost exceeds its marginal benefit.
C. cost equals its marginal benefit.
D. benefit is still better.
Ans: A. benefit exceeds its marginal cost.
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The improved health of a nation can increase:
A. the productivity of workers and economic development. B. economic growth and malnutrition among children. C. economic development and illiteracy. D. productivity of workers and fiscal policy spending.
In the equation C = a + bY, which describes the aggregate consumption function, 'a' stands for:
(a) The amount of consumption which is independent of income; (b) The marginal propensity to consume; (c) The amount of consumption when income is at a maximum; (d) The average consumption level.
Money illusion occurs
A. when we disregard inflation adjustments for dollar values. B. when prices decrease. C. when money disappears. D. at a magic show.
In 2008, you buy a 1967 Shelby cobra. This purchase would
A. be included in the GDP for 2008. B. not be included in the GDP for 2008. C. be included in both the GDP for 1967 and 2008. D. be in the GDP for 2008 at a depreciated value.