Regretting the last unit of consumption of beer implies that
A) the total utility from drinking beer is negative.
B) beer is an inferior good.
C) the marginal utility of the last unit of beer consumed is negative.
D) the demand curve for beer is horizontal.
Answer: C
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A decrease in aggregate demand causes a decrease in ________ only in the short run, but causes a decrease in ________ in both the short run and the long run
A) the price level; real GDP B) real GDP; real GDP C) the price level; the price level D) real GDP; the price level
Suppose the U.S. government is about to ban the importation of Nicaraguan steel. The reason cited is that the production of steel contributes to substantial environmental pollution. At the same time, the U.S. government offers subsidies to domestic steel producers. Under such a situation World Trade Organization rules permit the U.S. government to implement the ban on the import of Nicaraguan steel.
Answer the following statement true (T) or false (F)