Which of the following statements is correct?
A) Utility and usefulness are synonymous.
B) The marginal utility derived from successive units of a product tends to be similar for all consumers.
C) Because utility is not measurable, the utility-maximizing rule provides no useful insights as to consumer behavior.
D) A product may yield utility, but not be functionally useful.
Ans: D) A product may yield utility, but not be functionally useful.
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A reserve ratio of 0.10 means that a bank can lend an amount equal to:
A. 90 percent of its deposit liabilities. B. 10 percent of its excess reserves. C. 90 percent of its excess reserves. D. 10 percent of its deposit liabilities.
Which of the following statements is false?
A. Pension plans and life insurance are often both offered by the same institution. B. They are both vehicles for saving. C. Life insurance pays off when you die while the pension plan pays off if you don't. D. Life insurance companies hold more in stocks than pension funds do.
The Environment Ministry in Japan proposed a new carbon tax to meet Japan's obligations to reduce carbon dioxide emissions under the Kyoto Treaty. The tax would be levied on producers and importers of fossil fuels, and the expectation is that it would be largely passed on to consumers. This proposal is an example of a:
A. free rider problem. B. progressive tax. C. voluntary program. D. tax incentive policy.
In the above figure, which of the figures show(s) a relationships between x and y with a positive slope?
A) Figure D only B) Figure A and Figure B C) Figure C only D) Figure B and Figure C E) Figure A and Figure D