Economists using marginal utility theory assume that consumers' objectives are to
A) maximize their total utility.
B) maximize their marginal utility.
C) maximize their income.
D) none of the above.
A
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A rise in the domestic interest rate leads to capital
A. outflows and exchange rate appreciation. B. outflows and exchange rate depreciation. C. inflows and exchange rate depreciation. D. inflows and exchange rate appreciation.
If the best educated and most skilled persons leave a country, then in the short term this country's human capital per worker
a. and physical capital per worker will increase. b. and physical capital per worker will decrease. c. will increase but physical capital per worker will decrease. d. will decrease but physical capital per worker will increase.
When price = ATC = MC = MR,
A. economic profits are positive. B. economic profits are zero. C. economic profits are negative. D. opportunity costs are zero.
Which of the following statements would Milton Friedman disagree with?
A. In practice, there is little scope for using monetary policy actively to smooth out business cycles. B. In the long run, changes in the money supply primarily affect the price level. C. Monetary policy has few short-run effects on the real economy. D. The Federal Reserve cannot be relied on to effectively smooth out business cycles.