The diamond-water paradox is an example that shows that
A. marginal utility can initially increase and then decrease.
B. necessities like water should have a higher price.
C. there are exceptions to the law of diminishing marginal utility.
D. marginal utility rather than total utility determines what people are willing to pay for a good.
Answer: D
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According to monetarists, such as Milton Friedman ________
A) the central bank should have discretionary authority to respond to economic problems that develop over the course of the business cycle B) the Taylor rule should effectively address the problem of inflation C) an increase in government spending has substantially the same effects as an unanticipated increase in the money supply on domestic interest rates D) the money supply should grow at a constant rate regardless of the state of the economy
Suppose demand for a good is QD = 100 - P and supply is QS = -20 + P. What is the amount consumers pay producers?
a. 60 b. 2400 c. 3600 d. 6400