If Ethan thinks the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, and Ethan is a utility-maximizing consumer, he should
a. bowl less, so the marginal satisfaction from expenditures in this area will increase.
b. spend more on hamburgers, so total satisfaction from that activity will increase.
c. eliminate spending on hamburgers.
d. bowl more and spend less on hamburgers.
D
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Today's forward rate must equal the future spot rate
Indicate whether the statement is true or false
One of the most important determinants of accelerated economic growth is: a. relaxed property rights
b. an increase in population. c. a high level of savings. d. an increased rate of consumption.
The utility a consumer derives from knowing that others receive benefit from an environmental good is called
a. stewardship value c. direct user value b. indirect user value d. vicarious consumption
Returns to investments in human capital can be calculated with great accuracy.
A. True B. False C. Uncertain