Refer to the above table. Which of the four people have utility schedules characterized by the law of diminishing marginal utility?
A. Dave and Kate only
B. Dave only
C. Amy and Brook only
D. Amy, Brook, and Kate only
Answer: C
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The above figure shows the marginal private benefit and marginal social cost of a college education. If society's external benefits from college graduates is $10,000 each, then the private market outcome is inefficient because
A) no students will go to college. B) society places less value on educating the next student than it will cost society to educate that student. C) society places greater value on educating the next student than it will cost society to educate that student. D) the marginal cost will shift upward.
Which school of economics held that individuals and business firms learn, through experience, to instantaneously anticipate the consequences of changes in monetary and fiscal policy?
A. The Keynesians B. The monetarists C. The supply-siders D. The rational expectationists
Total surplus:
A. is producer and consumer surplus combined.
B. is producer surplus minus consumer surplus.
C. is consumer surplus minus producer surplus.
D. is the total amount spent on a good in a market.
According to John Maynard Keynes:
a. aggregate expenditures (demand) can be forever inadequate to achieve full employment. b. aggregate output (supply) can be forever inadequate to achieve full employment. c. the economy would automatically adjust to full employment in the long run. d. neither aggregate demand nor aggregate supply is a determinant of full-employment real GDP.