Amy has the total utility values given above for DVD rentals a week. Complete the table by calculating her marginal utilities
What will be an ideal response?
Quantity
(rentals per week) Total utility Marginal utility
0 0 X
1 28 28
2 54 26
3 78 24
4 100 22
5 120 20
6 138 18
7 154 16
The completed table is above.
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If a policy helps some but harms others
A) the result is a Pareto improvement for the people who are helped. B) then the cost-benefit analysis will show a net increase in surplus and is therefore desirable. C) we cannot use the Pareto principle to evaluate whether or not the policy is desirable. D) it is too hard to determine whether or not the outcome is desirable.
If an increase in prices increases total revenue for a product in the short run, in the long run, it will: a. Increase total revenue by more
b. Increase total revenue by less. c. Decrease total revenue. d. Either b. or c. could result in the long run.
Monetarists reject using discretionary monetary policy as an effective stabilization tool because they believe:
A. if the money supply grows at a rate equal to the economy's long-run rate of economic growth, then the economy will be unstable. B. that changes in the money stock do not affect output or prices. C. the Fed will miss its money supply targets and make the economy worse. D. monetary policy can stimulate aggregate demand, but it cannot affect inflation.
In the above figure, when real disposable income is less than 600, then
A. the MPC will fall. B. consumption is less than disposable income. C. consumption is the same as disposable income. D. consumption is more than disposable income.