An increase in government spending causes the:
a. Monetary base to fall.
b. Monetary base to either rise or fall, depending on the state of the economy.
c. No change in the monetary base.
d. Monetary base to rise.
.C
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Which of the following activities, if any, represents an external benefit? a. The benefit to a consumer from watching a film on DVD
b. The reduction in air quality resulting from industrial development in an urban area. c. The increase in the value of property belonging to your neighbors when you hire a landscaper to beautify your front yard. d. The reduction in property values when a new airport is built in a neighborhood.
Increases in total utility from the consumption of a good decrease as more is consumed. This statement is
A) the law of diminishing marginal utility. B) the law of average utility. C) the consumer optimum. D) not consistent with the assumption of rational behavior.