Which of the following statements is true about individuals and utility?
A. Individuals seek to maximize utility.
B. Individuals seek to maximize their income, not utility.
C. Individuals will either minimize or maximize utility depending on the situation.
D. Individuals rarely try to maximize their utility.
A. Individuals seek to maximize utility.
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Congress established the FOMC because
A) a group was needed to set reserve requirements for member banks. B) of a lack of coordination among district banks in carrying out open market operations. C) Congress was attempting to expand its influence within the Federal Reserve System. D) a group was needed to coordinate the setting of discount rates by the district banks.
The features of the M-Form of firm organization are
a. divisions have difficulty responding to market changes b. it is easier to maintain customer relationships c. coordination across divisions is simple and does not take much management time d. evaluating employees is easier because managers typically are similarly trained
Suppose that alcohol consumption creates a negative externality. What can the government do to equate the equilibrium quantity of alcohol and the socially optimal quantity of alcohol?
a. impose a tax on alcohol that is equal to the per-unit externality b. offer a subsidy on alcohol that is equal to the per-unit externality c. impose a regulation limiting the amount of alcohol that each consumer can purchase d. nothing
Now that Social Security payments are indexed the:
A. nominal value is adjusted to maintain a constant real value. B. payments are adjusted so retirees can buy more with their payments over time. C. payments are not adjusted enough, so retirees can buy less with their payments over time. D. real value is adjusted to maintain a constant nominal value.