Which of the following statements is true about individuals and utility?
A. Individuals seek to maximize their income, not utility.
B. Individuals will either minimize or maximize utility depending on the situation.
C. Individuals rarely try to maximize their utility.
D. Individuals seek to maximize utility.
Answer: D
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Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit demand curve shifts to the right?
A) Both equilibrium rate of interest and quantity of credit will decrease. B) The equilibrium rate of interest will decrease and the quantity of credit will increase. C) Both equilibrium rate of interest and quantity of credit will increase. D) The equilibrium rate of interest will increase and the quantity of credit will decrease.
The basic difference between macroeconomics and microeconomics is that: a. microeconomics looks at aggregate markets while macroeconomics is concerned with individual markets. b. macroeconomics is concerned with policy decisions while microeconomics applies only to theory
c. microeconomics is concerned with individual markets while macroeconomics is concerned with aggregate markets. d. macroeconomics is concerned with positive economics while microeconomics is concerned with normative economics.
The money supply falls from $1,200 billion to $1,160 billion. According to the simple quantity theory of money, the price level will decline by __________ percent
A) 3.33 B) 4.68 C) 5.09 D) 7.65
In economics, the concept of active government intervention in the macroeconomy was first emphasized by
A. supply-side economists. B. rational expectation theorists. C. monetarists. D. John Maynard Keynes.