Risk aversion is best explained by
a. timidity.
b. increasing marginal utility of income.
c. constant marginal utility of income.
d. decreasing marginal utility of income.
d
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Refer to the scenario above. Jack will derive ________ units of utility if both of them try to move the tree
A) 5 B) -5 C) -2 D) 10
When the Fed buys government securities in the open market, the money supply ________ because ________
A) decreases; banks lose liquidity, they make fewer loans and checking account deposits decrease B) increases; banks gain liquidity, they make more loans and checking account deposits increase C) increases; banks lose liquidity, they make more loans and checking account deposits increase D) decreases; banks gain liquidity, they make fewer loans and checking account deposits decrease E) none of the above
In the long run a company that produces and sells laundry detergent incurs total costs of $2,500 when output is 1,250 units and $2,750 when output is 1,500 units. For this range of output, the laundry detergent company exhibits
a. economies of scale. b. constant returns to scale. c. diseconomies of scale. d. efficient scale.
Which of the following would cause an economy to produce at a point inside its production possibilities curve?
A) the efficient allocation of all factors of production B) population growth C) unemployment and an inefficient use of available resources D) capital accumulation