Because incomes are limited, purchasing one thing means not being able to purchase other things. This indicates that:
a. marginal utility diminishes.
b. marginal utility is constant.
c. people will allocate their income among goods so as to achieve the most satisfaction.
d. people will allocate their income among goods so that the marginal utilities of all goods is equal.
e. people will allocate their income among goods so that the marginal utilities of all goods is zero.
c
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When consumption of a good is nonrival and nonexcludable, the good is a
A) public good. B) private good. C) mixed good. D) service.
The single most important factor in the 1992 crisis of the EMS was
A) ratification of the Single European Act. B) the near failure of the Maastricht Treaty. C) the fall in unemployment rates throughout the EEC. D) German reunification efforts. E) the outbreak of war in the former Yugoslavia.
In order to understand when a model may not be accurate, which is not an important action to take?
A. Identify what important details were omitted when developing a model. B. Make sure assumptions made in the model are clear and accurate. C. Test the model for accuracy. D. Make sure the model all includes all possible details.
If you believe that stock prices follow a random walk, then probably you
a. do not believe that there is positive relationship between risk and return. b. do not believe that stock prices reflect all available information. c. believe in the validity of the efficient markets hypothesis. d. believe that it is a good idea to engage in fundamental analysis.