The marginal utilities associated with the first 4 units of consumption of good Y are 10, 12, 9, and 7, respectively. What is the total utility associated with the third unit?
A. 3.
B. 9.
C. 25.
D. 31.
Answer: D
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When a Nash equilibrium is reached:
A. the outcome will only change if the "lead" player changes his strategy. B. no one has an incentive to break the equilibrium by changing his strategy. C. it must be true that all players have a dominant strategy. D. None of these statements is true.
If GDP is $5,000 billion and the velocity of the M2 money supply is 5, what is the amount of the public's holding in the form of M2?
A. $500 B. $2,000 C. $1,500 D. $1,000
Suppose that total sales in an industry in a particular year are $600 million and sales by the top four sellers are $200 million, $150 million, $100 million, and $50 million, respectively. We can conclude that:
A. price leadership exists in this industry. B. the concentration ratio is more than 80 percent. C. this industry is a differentiated oligopoly. D. the firms in this industry face a kinked demand curve.
The trade-off between current consumption and the production of capital goods is also a trade-off between
A) the future cost for capital goods and future cost of consumption goods. B) having fewer needs and more wants in the future. C) satisfying the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.