Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from consuming cake is
A) maximized.
B) decreasing.
C) negative.
D) increasing.
Answer: A
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The transactions demand for money is the demand to hold money to
A) make regular, expected purchases. B) purchase bonds when interest rates increase. C) store one's wealth. D) meet unplanned expenditures.
Refer to the scenario above. What is the sum of the payoffs to the firms if both the firms choose Strategy X?
A) 6 B) 0 C) 1 D) -1
Incentives to provide resources to less qualified individuals are referred to as
a. adverse selection b. forced saving c. moral hazard d. seigniorage e. all of the above
Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
a. an increase in the supply of electric cars so that the supply curve shifts rightward. b. an increase in the supply of electric cars so that the supply curve shifts leftward. c. a decrease in the supply of electric cars so that the supply curve shifts rightward. d. a decrease in the supply of electric cars so that the supply curve shifts leftward.