Economists use the term "marginal" to describe costs and benefits:
a. that are poorly defined.
b. that are incremental and thus relevant to decision making.
c. that are minimal and hardly worth noting.
d. that are noteworthy but not the most important.
e. whose importance can be minimized through hard work.
b. that are incremental and thus relevant to decision making.
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In a model with leisure hours and a composite consumption good, you cannot tell whether workers will work more or less if tastes are quasilinear in the consumption good.
Answer the following statement true (T) or false (F)
Consider the following statements when answering this question;
I. The variance of the returns of an investor's portfolio can be reduced by selling assets from the portfolio, and investing the proceeds in other assets where returns are positively correlated with the portfolio's remaining assets. II. The value of complete information is always positive. A) I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) I and II are false.
The concept of marginal utility:
A. explains why individuals find it difficult to maximize their total utility. B. is the change in total utility that comes from consuming one additional unit of a good or service. C. can only be applied to situations in which individuals can choose among several goods or services. D. is the loss in utility from making a bad decision.
If over the next year the inflation rate in the euro area is higher than the inflation rate in Japan, then the euro should depreciate relative to the Japanese yen
a. True b. False Indicate whether the statement is true or false