Total utility is maximized when _____
a. the marginal utility is maximized
b. the marginal utility is the same for all goods consumed
c. the marginal utility per dollar expenditure is maximized
d. the marginal utility per dollar expenditure is the same for all goods consumed
e. any change in purchases from good A to good B reduces marginal satisfaction
d
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The crowding out effect refers to the ________ from ________ in the government's budget deficit
A) decrease in employment; an increase B) decrease in investment; an increase C) increase in investment; an increase D) increase in consumption; an increase E) decrease in consumption; a decrease
If the real interest rate rises, people
A) save more. B) save less. C) earn a higher real wage rate. D) decrease their expected future income.
Suppose a bank has $100,000 in checking account deposits with no excess reserves and the required reserve ratio is 5 percent. If the Federal Reserve lowers the required reserve ratio to 3 percent, then the bank will now have excess reserves of
A) $0. B) $2,000. C) $3,000. D) $5,000.
Traditional economic models ________ the fact that people sometimes regret making decisions with perfectly predictable consequences.
A. can easily explain B. are supported by C. account for D. cannot explain