With respect to water and diamonds, water
A) has a higher marginal utility than diamonds.
B) has a lower marginal utility than diamonds.
C) is cheaper than diamonds because it has a lower total utility.
D) is cheaper than diamonds because it has a higher total utility.
B
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If the exchange rate falls, then the expected profit from holding the currency
A) does not change. B) increases. C) decreases. D) can either increase or decrease.
In a subgame-perfect equilibrium
A) each player's strategy constitutes a Nash equilibrium at every subgame of the original game. B) the last mover has an advantage over other players. C) the first mover has an advantage over other players. D) each player has the same response as the others at every subgame of the tree.
Automatic stabilizers lead to: a. a decrease in taxes collected by the government during an economic expansion. b. a decrease in unemployment compensation during a recession
c. Congressional action on changing the tax codes. d. none of the above
In which industry or sector of the economy is output least likely to be affected by the business cycle?
What will be an ideal response?