Question Details

The additional satisfaction gained from consuming one more unit of a product 


1. Fiscal policy is ____.
A. often used to stabilize economic expansions
B. often used to counter the negative impact other factors may have on aggregate demand
C. often used to counter the positive impact other factors may have on aggregate demand
D. of no use in countering economic fluctuations
E. mainly used to keep inflation low and stable
2. What best describes what is included in the GDP measure?
A. Only newly produced goods.
B. Only newly produced services.
C. All goods and services sold.
D. Only newly produced goods and services.
E. Any economic interaction.
3. Which of the following represents the substitution effect of an increase in the price of apples?
A. A decrease in the consumer's real income.
B. A decrease in the quantity of apples purchased.
C. A decrease in the quantities of all goods purchased by the consumer.
D. A shift of consumption from other goods to apples.
E. A decrease in the opportunity cost of consuming apples.
4. The additional satisfaction gained from consuming one more unit of a product or service is _____.
A. marginal utility
B. total utility
C. the same for every person
D. average utility
E. not measurable
5. Solartech Corporation, a U.S. exporter, sold a solar heating station to a Japanese customer at a price of
143.5 million yen, when the exchange rate was 140 yen per dollar. In order to close the sale, Solartech
agreed to make the bill payable in yen, thus agreeing to take on exchange rate risk for the transaction.
The terms were net 6 months. If the yen fell against the dollar such that one dollar would buy 154.4 yen
when the invoice was paid, what dollar amount would Solartech actually receive after it exchanged yen
for U.S. dollars?
A. 1000000
B. 1025000
C. 1075958
D. 929404
E. 975610



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