Which of the following best describes the economic concept of utility?
a. Utility is the total number of units of a commodity that a consumer buys.
b. Utility measures usefulness of goods, such as tools or food, and so goods such as artwork or attractive landscaping by definition has no utility.
c. Utility measures the satisfaction, or pleasure, that people receive form consuming a good or service.
d. Utility measures the purchasing power of individuals.
c
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When the price of a good changes, the amount of that good that buyers wish to buy changes:
A. solely because of the substitution effect. B. only if the substitution effect and the income effect do not cancel out each other. C. because of both the substitution and the income effects. D. solely because of the income effect.
What is the United States primary trade promotion initiative with Africa?
What will be an ideal response?
The European Union's Common Agricultural Policy (CAP) is, in effect
A) a tariff imposed on agricultural exports. B) a tariff imposed on agricultural imports. C) a subsidy that reduces the cost of agricultural exports. D) a subsidy that increases the cost of agricultural exports. E) a quota that limits production of agricultural goods by EU nations.
From an economist's perspective, information is a product, but differs from other goods and services in all of the following ways except which one?
A) It is expensive to produce, but cheap to communicate. B) One firm's use of information does not prevent other firms from simultaneously using the exact same information. C) It is expensive to produce, but cheap to copy. D) Information created by firms cannot be protected through government laws.