A higher real interest rate typically induces consumers to:
a. To borrow more money.
b. Save less
c. Purchase more goods that are bought using credit
d. Purchase fewer goods that are bought using credit
Answer: d. Purchase fewer goods that are bought using credit
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For a risk-averse individual, as wealth increases, total utility ________ and marginal utility ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake
According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake. A) 3; only the lakeside residents B) 3; either the firms or lakeside residents C) 4; the firms D) 4; either the firms or lakeside residents
Based on this consumer surplus graph, which glass of iced tea gives Emily the greatest consumer surplus?
a. the first
b. the second
c. the third
d. the fourth
For the purpose of determining whether a family is officially considered to be living in poverty, poverty figures do not include:
A. profits of a small business owner. B. food stamps. C. earned income. D. after-tax income of the poor.