In economic theory, utility refers to the:
a) Satisfaction obtained from a good or service.
b) Willingness to buy specific quantities of a good or service at a particular price.
c) Additional satisfaction obtained from one more unit of a good or service.
d) Decrease in satisfaction as more of a good or service is consumed.
Answer: a) Satisfaction obtained from a good or service.
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To increase the money supply using the reserve requirements, what would the Fed typically do?
A) let each bank get more currency from the Treasury B) make each bank set its own reserve levels C) reduce the reserve requirement for banks D) increase the reserve requirement for banks
The ability to control a scarce resource or input is a characteristic of perfect competition.
Answer the following statement true (T) or false (F)
Decision making that seeks only solutions that are acceptable is called
a. optimizing. b. satisficing. c. benchmarking. d. maximizing.
A flow variable:
a. Is an inconsistency in terms, because something cannot be a "variable" and a "flow" at the same time. b. Is measured at a point in time. c. Is measured over a period of time.