How does the introduction of cognition into a consumer's choice between consumption now and saving affect marginal utility per dollar, the amount spent on consumption now, and the amount saved? Assume utility is maximized.
What will be an ideal response?
The marginal utility per dollar will increase for both consumption and saving. The amount spent on consumption now will decrease and the amount saved will increase.
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Tris owns the only auto repair shop on Lonely Island. Tris is a single-price monopoly, so Tris operates on the ________ part of the ________ curve
A) elastic; supply B) inelastic; supply C) inelastic; demand D) elastic; demand
Suppose that the current federal funds rate is above the federal funds target rate. In order to lower the federal funds rate the Fed will ________________ securities on the open market which will ________________ the supply of reserves in the market for reserves, pushing the rate closer to the target rate
A) sell; increase B) purchase; increase C) purchase; decrease D) sell; decrease
Comparisons of economic activity over time should be made using:
A. real GDP. B. current-dollar GDP. C. nominal GDP adjusted for unemployment. D. nominal GDP per capita.
Which of the following is not an example of a public good?
A. space exploration B. levees C. parks D. a Big Mac