Government purchases in national income accounts would include payments for:

Marginal utility theory assumes that when Sally consume less of a good that she was previously consuming more than one unit of, her ________

A) total utility increases B) marginal utility increases C) income increases D) total utility is maximized

If a 4 percent rise in the price of peanut butter lowers the total revenue received by the producers of peanut butter by 4 percent, the demand for peanut butter

A) is elastic. B) is inelastic. C) is unit elastic. D) has an elasticity of 2.0.