You will still be able to listen to NPR (National Public Radio) whether or not you contribute to their fund-raising campaign, so you decide not to contribute. This is an example of the
A. drop-in-the-bucket problem.
B. private good problem.
C. free-rider problem.
D. rival in consumption problem.
Answer: C
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For a risk averse person, the marginal utility of wealth
A) decreases as wealth increases. B) increases as wealth increases. C) decreases as wealth decreases. D) remains constant as wealth increases.
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond C is approximately
A. 0.05 percent. B. 5.2 percent. C. 4.7 percent. D. 100 percent.
"Automatic stabilizers" played a part in reducing the length and severity of the recession of 1953-54 . Which of the following is an example of an "automatic stabilizer"?
a. Deficit spending by the federal government b. Spending on education by local and state governments c. Programs like unemployment insurance and Social Security d. Actions by the Federal Reserve aimed at reducing interest rates
For a Giffin good, the income effect is
A. less than the substitution effect. B. the same as the substitution effect. C. greater than the substitution effect. D. in the same direction of the substitution effect.