Which of the following statements is true regarding utility?
a. Utility can be measured
b. Utility cannot be measured
c. Utility, at the margin, eventually increases as more of a good in consumed.
d. A and C are true
b. Utility cannot be measured
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Explain carefully the opportunity costs of a mother's time, what may lead these to change over time, and what effects these changes have on family decisions
What will be an ideal response?
Putting money into mental categories can:
A. cause people to take risks they wouldn't otherwise take. B. help people organize their expenditures. C. cause irrational behavior. D. All of these are true.
Figure 9-1
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In Figure 9-1, the economy is
A. experiencing an inflationary gap, shown by the horizontal distance EB. B. at full employment without inflation. C. experiencing a recessionary gap, shown by the horizontal distance EB. D. experiencing a recessionary gap, shown by the distance between EF.
Dee is an accomplished actress and a homeowner who pays a landscaper to maintain her lawn rather than do it herself. Dee has determined that she can earn more in the hour it would take her to work on her lawn than she must pay her landscaper. This scenario is an example of which principle of economics?
a. Trade can make everyone better off. b. Markets are usually a good way to organize economic activity. c. Governments can sometimes improve market outcomes. d. Prices rise when the government prints too much money.