Question 61 (40 points) From the list on your right select the letter that contains the word, phrase, name, etc that best matches the word, phrase, name, etc listed on the left. WY L i SRARANE - Total utility declines as the quantity consumed of a good increases Income declines A small increase in price of a good reduces quantity demanded to zero Represents a situation where it is possible to increase production in one area without reducing in another Although increased government investments in infrastructure saved or created 1.1 million jobs in construction industry and 400,000 jobs in manufacturing by March 2011, the U.S. unemployment rate for the month was still 8.8% Price elasticity of demand for good X is 2.5 If Hurricane Harvey reduces both demand and supply of natural gas "There is no such thing as a free lunch" The difference between the maximum price a person is willing and able to pay and the actual price he/she paid A downward sloping curve that is bowed outward 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Each time a choice is made opportunity costs are incurred. A positive macroeconomics statement. A PPF with increasing opportunity cost Productive inefficient A normative microeconomics statement A PPF with constant or decreasing opportunity cost A society that produces at a point above its PPF. Equilibrium price for the item will necessarily increase A situation of no-exchange. Equilibrium price for the item can increase, decrease, or remain the same. consumer's surplus Decrease price to raise revenue Perfectly elastic demand Negative marginal utility The Budget Constraint shifts inward Increase price to raise revenue Perfectly inelastic demand The Law of Diminishing Marginal Utility The Budget Constraint line rotates clockwise