If Bella eats one piece of pie, she gains a utility of 10. If she continues, a second piece yields a marginal utility of 8, a third will yield a marginal utility of 2, and a fourth piece of pie will yield a marginal utility of 2. We can say:
A. Bella's marginal utility is not diminishing.
B. Bella's total utility will decrease if she eats the third piece of pie.
C. Bella's total utility will be maximized if she eats three pieces.
D. Bella's total utility decreases after the first piece of pie.
C. Bella's total utility will be maximized if she eats three pieces.
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You buy a bond for $1,000 from the federal government, which guarantees that you will receive $70 a year forever. Thus, 7 percent was the market rate of interest when you bought the bond. Suppose that immediately after you buy the bond, the market rate of interest goes to 10 percent. The market value of your bond
a. could be more or less than $1,000 b. will be less than $1,000 c. will be more than $1,000 d. will remain unchanged e. will be $1,000
If the federal government is reducing net taxes to stimulate the economy at the same time the Fed is selling bonds in the open market, the effectiveness of the expansionary fiscal policy will be
A) increased, because the Fed'?s actions will result in higher interest rates. B) reduced, because the Fed'?s actions will result in higher interest rates. C) increased, because the Fed'?s actions will result in lower interest rates. D) reduced, because the Fed'?s actions will result in lower interest rates.
What factors can lead the real wage rate to be above its full-employment equilibrium level?
What will be an ideal response?
Which nation listed below is successfully transitioning from a planned economy to a hybrid market economy?
A. People’s Republic of China B. Japan C. United Kingdom D. United States