If other things constant, as more bananas are consumed, marginal utility eventually
a. decreases at the same rate for all people
b. decreases at the same rate for all goods for a given person
c. increases at the same rate for all people
d. decreases at different rates for different people and for other goods
e. decreases at different rates for different people but at the same rate as other goods for an individual
D
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Complete "crowding-out" describes the situation in the economy when
A) fiscal policy is effective in changing output. B) the shift in the LM curve by monetary policy is "impotent." C) the shift in the IS curve by fiscal policy is "impotent." D) fiscal policy crowds out monetary policy.
If protective import-restricting quota are imposed by a country, all of the following groups benefit EXCEPT
A) domestic producers in the affected industry. B) domestic consumers in the affected industry. C) employees of domestic producers in the affected industry. D) importers that are able to obtain the rights to sell imported items in the affected industry.
According to the more-is-better principle:
A. a consumer will always select the bundle that is ranked highest among all alternative bundles. B. a consumer will prefer a bundle that has the largest amount of the good they prefer most. C. consumers always try to achieve the highest possible level of well-being. D. when comparing consumption bundles, a consumer prefers a bundle that has more of every good.
The combination of shocks hitting an economy is:
A. usually known to policymakers before they decide what action to take. B. hard to see without looking at lots of economic data. C. difficult to identify because they are so numerous. D. irrelevant as long as the rates of inflation and real growth are known.