What is utility and what are its characteristics?
What will be an ideal response?
Utility is the want-satisfying power of a good or service. It is subjective, so that it cannot be measured objectively or by scientific instruments, and one person's utility cannot be compared to another's utility. It is not necessarily useful or utilitarian either. If an individual chooses a banana instead of an apple, we can say the person expects to receive more utility from the banana than from the apple.
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The yield of a stock is the
A. dividend divided by the closing price per share. B. dividend divided by the average daily price of the stock. C. closing price divided by the 52-week low price. D. dividend divided by the opening price per share.
The aggregate demand curve:
a. would be little affected by a technological advancement. b. shifts to the right when spending decreases. c. shifts to the left when there is a decrease in taxes. d. cannot move independently of the aggregate supply curve. e. shifts to the right when there is an expectation that future income will fall.
Suppose GDP for 2009 was $1,500, wages and salaries were $800, rent payments were $200, consumption was $1000 . and interest payments were $200 . What must the value of profits have been?
a. $200 b. $500 c. $0 d. $100 e. $300
In 1968, economist Milton Friedman published a paper criticizing the Phillips curve on the grounds that
a. it seemed to work for wages but not for inflation. b. monetary policy was ineffective in combating inflation. c. the Phillips curve did not apply in the long run. d. Phillips had made errors in collecting his data.