What is the distinction between total utility and marginal utility?
What will be an ideal response?
Total utility is the entire amount of satisfaction an individual obtains from the total amount of goods and services consumed. Marginal utility is the change in total utility from a one-unit increase in the consumption of a good or service.
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Net exports:
a. will increase if exports of goods decline. b. will increase if imports of goods rise. c. in our GDP accounts permit estimation of foreign ownership of American businesses. d. include budgetary outlays of the federal government. e. is the net effect of the foreign trade sector on GDP.
The federal funds rate is determined in a market and targeted by the Fed
a. True b. False
Advocates of the active approach argue that even when there is a large contractionary gap,
a. the downward renegotiation of wages necessary to increase the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output. b. the upward renegotiation of wages necessary to decrease the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output. c. the upward renegotiation of wages necessary to decrease the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output. d. the downward renegotiation of wages necessary to decrease the short-run aggregate supply curve and real output may take a long time, and during this period of adjustment the public bears a high cost in terms of foregone economic output.
Suppose that one worker can produce 15 cookies, two workers can produce 40 cookies together, and three workers can produce 75 cookies together. What is the marginal product of the 2nd worker?
A. 20 cookies B. 35 cookies C. 40 cookies D. 25 cookies