Utility is:
A. useful in quantitatively describing a person's preferences for one good over another.
B. useful in comparing the relative satisfaction different consumers get from a particular good.
C. an interesting concept, but not really useful for anything.
D. useful in predicting when to put an item on sale.
Answer: A
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Suppose a roll of paper towels costs $5 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is more expensive for the consumer to buy the paper towels at Big Supplies. B) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop. C) It is cheaper for the consumer to buy the paper towels at Big Supplies. D) The consumer is indifferent as to where they buy the paper towels.
The burden of the internal portion of the debt is incurred
A. Solely by the U.S. government. B. When the debt comes due. C. When the debt-financed activity takes place. D. None of the choices are correct.
According to behavioral economists, precommitments:
A. help people overcome their self-control problems caused by time inconsistency. B. do not fundamentally alter decisions because they do not change the benefits or costs of a particular action. C. end up being more costly as people regularly violate them and incur penalties. D. overcome cognitive biases introduced by brain System 2.
Which of the following statements is NOT true?
A. Economics is the study of how people allocate their limited resources to satisfy their unlimited wants. B. Economics does not use theories. C. Economics is a social science. D. Economics is an empirical science.