John loves to travel. He would never turn down the opportunity to go on a trip. This means that, for John:
a. the total utility of travel always increases.
b. marginal utility of travel never decreases.
c. the law of diminishing marginal utility does not apply to travel.
d. marginal utility of travel is always zero.
e. extra travel yields zero consumer surplus.
a
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During the housing market and financial crises of 2007 and 2008, the Fed increased the volume of discount loans in an attempt to
A) reassure financial markets and promote financial market stability. B) stabilize prices and reduce the growing inflation rate. C) eliminate structural unemployment to lower the unemployment rate. D) attract foreign investment and stabilize interest rates.
If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then the demand for the good is _____
a. inelastic b. relatively elastic c. unit-elastic d. perfectly inelastic e. income elastic
In 2005, the European Union began a program to
A. allow the trading of carbon-dioxide permits among firms. B. reduce greenhouse gas emissions by 10 percent within 5 years. C. eliminate greenhouse gas emissions by 50 percent within 15 years. D. subsidize firms that pollute more than a given limit.
Relating to the Economics in Practice on page 374: Considerable evidence suggests that recently in the United States,________ has increased and ________ has stagnated.
A. the real wage; the nominal wage B. the real wage for women; the real wage for men C. executive compensation; the real wage of the average worker D. the nominal wage of the average worker; executive compensation