If a person had increasing marginal utility, then the decline in utility from losing $1,000 would be greater than the increase in utility from gaining $1,000
a. True
b. False
Indicate whether the statement is true or false
False
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The time it takes for an additional dollar of net government expenditures to work its way through the economy and have its full effect
A) is about one quarter of a year. B) is between one and two years. C) is not yet known precisely because little empirical research has been done on the question. D) probably cannot be predicted from an examination of historical data.
Suppose that you have saved $100 . You can spend it today or you can put it in your savings account for a year and earn 5% interest. What is the opportunity cost of spending the money today?
What will be an ideal response?
From 1929 to 2013, the unemployment rate in the U.S. ________
A) has continued to grow but has always remained well above zero B) has fluctuated around zero C) has gone up and down but has always remained well above zero D) has decreased in most recessions E) has grown by a factor of four
If the MPC = 0.8, an increase in investment spending from $35 billion to $38 billion will increase real GDP by
A) $3 billion. B) $3.75 billion. C) $15 billion. D) $24 billion.