The following table describes utility for consuming cans of soda. Fill in the blank spaces and answer the following question: At what point does the law of diminishing marginal utility set in?Cans of SodaTotal utilityMarginal utility114 2 12336 444 5 6
A. Marginal utility never diminishes.
B. Between three and four cans
C. Marginal utility diminishes everywhere.
D. Between four and five cans
Answer: C
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The goals of rate regulation have included the prevention of
A) monopoly profits. B) oligopolistic pricing. C) marginal cost pricing. D) average cost pricing.
Cost-benefit analysis is the public sector counterpart to ____ used in private, profit-oriented firms
a. ratio analysis b. break-even analysis c. capital budgeting techniques d. economic forecasting e. none of the above
Which of the following reflects an increase in unemployment?
A) an increase in the labour force participation rate B) an increase in the involuntary part-time rate C) a decrease in the unemployment rate D) an increase in the employment-to-population ratio E) none of the above
Refer to the diagram for the federal funds market. If the Fed wants to raise the federal funds rate by one-half of a percentage point, it should:
A. act to increase reserves by $50 billion.
B. act to reduce reserves by $50 billion.
C. pursue an expansionary monetary policy.
D. buy bonds from banks and the public.