If increasing your consumption of pizza from 3 to 4 slices increases your utility, which of the following must be true?
a. The marginal utility of the fourth slice of pizza is equal to the total utility of 4 slices of pizza.
b. The marginal utility of the fourth slice of pizza is greater than the marginal utility of the third
slice of pizza.
c. The marginal utility of the fourth slice of pizza is positive.
d. The marginal utility of the third slice of pizza is negative.
c. The marginal utility of the fourth slice of pizza is positive.
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Does fiscal policy affect monetary policy?
A) No, because real output and income can and sometimes do move in the opposite direction from nominal money output and income. B) Yes, because the Fed and the Treasury naturally tend to pursue similar goals. C) Yes, because government deficits or surpluses affect the total demand for credit. D) Yes, because the government usually prints new money to finance deficits and retires that money when it runs a surplus.
Exhibit 7-11 A firm's cost and marginal revenue curves
?
In Exhibit 7-11, when the price drops below $2, the profit-maximizing (or loss-minimizing) firm:
A. should shut down and produce zero. B. should produce output equal to 4. C. is making an economic profit of $8. D. should try to produce more output.
Another term for "economic models" is
A) economic systems. B) economic theories. C) economic science. D) economic institutions.
Bob invests $25 in an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. From this information we can conclude that Bob is
A) risk loving. B) risk neutral. C) risk averse. D) Any one of the three above.