Suppose the marginal utilities for the first three cans of soda are 100, 80 and 60, respectively. The total utility received from consuming 2 cans is
A) 20.
B) 80.
C) 90.
D) 180.
Answer: D
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When a nation imports a good, its ________ surplus decreases and its ________ surplus increases
A) consumer; producer B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
A decision by foreign central banks to sell their holdings of U.S. Treasury bonds will
A) lower bond prices and interest rates in the United States. B) increase bond prices and lower interest rates in the United States. C) lower bond prices and increase interest rates in the United States. D) increase bond prices and interest rates in the United States.
U.S. exports:
a. rise as our GDP rises, and fall as our GDP falls b. fall as our GDP rises, and rise as our GDP falls c. are insensitive to our GDP d. have no relation to our GDP
The basic argument for income inequality is that:
A. the very rich establish consumption patterns that are desirable for the rest of society to emulate. B. the rich buy luxury goods that soon become affordable to everyone else because of economies of scale. C. income inequality is essential to maintain incentives to produce. D. inequality undermines incentives and tends to reduce the size of the national income.