Clifford lives by the motto "Eat, drink, and be merry today, for tomorrow doesn't matter"
If today's consumption is represented by "x" and tomorrow's consumption is represented by "y," then which of the following best represents Clifford's utility function? A) U = x - y
B) U = x/y
C) U = x
D) U = y
C
You might also like to view...
A company could produce 100 units of a good for $320 or produce 101 units of the same good for $324. The $4 difference in costs is
A) the marginal benefit of producing the 101st unit. B) the marginal cost of producing the 101st unit. C) both the marginal benefit and the marginal cost of producing the 101st unit. D) neither the marginal benefit nor the marginal cost of producing the 101st unit.
During World War II, the Fed in effect relinquished its control of monetary policy through its policy of
A) continually lowering reserve requirements. B) continually raising reserve requirements. C) pegging interest rates. D) targeting free reserves.
If a firm's MRP of capital > MFC, the firm should
a. lower the interest rate b. decrease its quantity demanded of loanable funds c. increase its quantity demanded of loanable funds d. hire more labor e. raise the interest rate
Goods that do not have close substitutes have downward-sloping demand curves
a. True b. False Indicate whether the statement is true or false