The law of diminishing marginal utility gives us a deeper understanding of the downward-sloping demand curve because
A. Consumers are willing to pay a higher price for a greater quantity.
B. Consumers do not respond to a change in price.
C. Consumer tastes change due to advertising.
D. When marginal utility is high, we are willing to pay a higher price.
Answer: D
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If marginal cost exceeds average variable cost, then ________ cost is ________ as output increases
A) average total; at a maximum B) average total; falling C) average variable; rising D) average fixed; at a maximum
The portion of the money supply controlled by a central bank is
a. currency. b. deposits. c. reserves. d. the monetary base. e. the money multiplier.
List two costs of inflation
The United States generally has a comparative advantage in the development of technology because it has:
A. a disproportionate share of the world's best research universities. B. patent laws, which no other country has. C. large amounts of natural resources. D. the greatest need for new technology.