As more of a product is consumed, total utility increases until
A) marginal utility increases at an increasing rate.
B) average utility increases at an increasing rate.
C) marginal utility is negative.
D) average utility decreases.
Answer: C
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As the Indian rupee depreciates relative to the dollar, total spending on Indian goods and assets will increase. Therefore, in the foreign exchange market, the
A) supply curve of euros is downward sloping. B) supply curve of dollars is upward sloping. C) demand curve for euros is upward sloping. D) demand curve for dollars is upward sloping.
If Sam can chop up more carrots per minute than Joe can, then
a. Joe has an absolute advantage in carrot chopping b. Joe must have a comparative advantage in carrot chopping c. Sam has an absolute advantage in carrot chopping d. Sam must have a comparative advantage in carrot chopping e. we can conclude nothing about absolute advantage