The resolution of Adam Smith's diamond-water puzzle is based on the distinction between marginal and total utility
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is true about a competitive market? A competitive market
A) has a handful of sellers but always has many buyers. B) must have a physical location. C) includes markets for goods and services but not for inputs. D) has so many buyers and sellers that no one can influence the price. E) has one seller competing to sell his or her product.
Expected utility is
A) the maximum utility that a person can get from a set of possible outcomes. B) the probability-weighted mean of the utility gained from a set of possible outcomes. C) negative for risk-averse people. D) indeterminant for risk preferring people.
Market clearing in the loanable funds market
a. violates Say's Law b. guarantees that total spending will be just sufficient to purchase whatever output is produced c. means that the interest rate never changes d. guarantees that total spending will equal the quantity of loanable funds demanded e. requires that the government run a budget deficit
Over the last ten years productivity grew faster in Mapoli than in Romeria while the population and total hours worked remained the same in both countries. It follows that
a. real GDP per person grew faster in Mapoli than in Romeria. b. real GDP per person must be higher in Mapoli than in Romeria. c. the standard of living must be higher in Mapoli than in Romeria. d. All of the above are correct.