The pleasure or satisfaction obtained from goods and services is known as:
A. Price elasticity of demand.
B. Total revenue.
C. Utility.
D. Ceteris paribus.
Answer: C. Utility.
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The minimum percentage of deposits that a depository institution must hold and cannot use for lending is known as the
A) minimum rate. B) required reserve ratio. C) money multiplier. D) discount rate.
What does the text mean by the question, "Where Is All the Currency?" How does it answer the question?
Arnie Ziffel has $20 per week to spend on any combination of pineapples and green tea. The price of a pineapple is $4 and the price of a bottle of green tea is $2. The table below shows Arnie's utility values. Use the table to answer the questions that
follow the table. Quantity of Pineapples Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Green Tea Total Utility Marginal Utility Marginal Utility per Dollar 1 32 1 28 2 52 2 46 3 64 3 54 4 68 4 60 5 70 5 64 6 71 6 66 7 71 7 67 a. Complete the table by filling in the blank spaces. b. Suppose Arnold purchases 4 pineapples and 2 bottles of green tea. Is he consuming the optimal consumption bundle? If so, explain why. If not, what combination should he buy and why? What will be an ideal response?
The marginal cost to society of reducing pollution increases as the level of pollution reduction increases because of the law of
A. Increasing externalities. B. Demand. C. Diminishing marginal utility. D. Diminishing returns.