Refer to the figure. Assuming this market is representative of the economy as a whole, a positive demand shock will:
A. increase both the price level and the quantity of output produced.
B. increase output but leave prices unchanged.
C. lower the price level but leave output unchanged.
D. raise the price level but leave output unchanged.
D. raise the price level but leave output unchanged.
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The law of diminishing marginal utility implies that the marginal utility of my fifth waffle is less than the marginal utility of my friend's second waffle, other things constant
a. True b. False
Related to the Economics in Practice on page 6: The opportunity cost to Mattel of having its Barbie doll assembled in China is
A. the $2 export value the doll carries when it leaves Hong Kong. B. having the Barbie doll assembled in the next best available location. C. the low wages paid to Chinese workers. D. the $8 of its $10 retail value which is captured in the United States.