A utility function is:
A. an equation for calculating the total utility that a group of people derive from consuming a particular good.
B. an equation for calculating the total utility that a particular person derives from consuming a particular combination of goods and services.
C. an equation for calculating the total utility that a particular person derives from consuming a particular good over a particular time period.
D. an equation for calculating the most utility a particular person can derive.
Answer: B
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A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
In perfect competition, each individual firm faces ________ demand curve
A) an inelastic B) an upward sloping C) a perfectly elastic D) a downward sloping
If the coefficient a in the new classical expression for short-run aggregate supply were equal to zero,
A) aggregate output would always be at its full-employment level. B) the short-run aggregate supply curve would slope down. C) the short-run aggregate supply curve would be a horizontal line. D) aggregate output would only differ from its full-employment level if the actual price level did not equal the expected price level.
The slope of a line is equal to the change in the x-variable divided by the change in the y-variable
a. True b. False Indicate whether the statement is true or false