Which of the followingbestdescribes the economic concept of utility?
A. Utility is the total number of units a consumer buys.
B. Utility measures the usefulness of goods, such as tools or food, and so goods such as artwork or attractive landscaping by definition has no utility.
C. Utility measures the satisfaction, or pleasure, that people receive from consuming a good or service.
D. Utility and price are interchangeable values.
Answer: C
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Refer to the figure above. Which of the following statements is true when the credit demand curve is CD2 and the credit supply curve is CS1?
A) At all rates of interest below 7% there will be an excess demand for credit. B) At all rates of interest below 5% there will be an excess demand for credit. C) At all rates of interest below 6% there will be an excess demand for credit. D) At all rates of interest below 8% there will be an excess demand for credit.
How did the original focus of the IMF differ from that of the World Bank?
A) The IMF provided short-term loans and the World Bank provided long-term loans. B) The IMF assisted wealthy nations and the World Bank assisted developing nations. C) The IMF gave grants to developing countries and the World Bank made loans. D) The IMF dealt in North and South America only, and the World Bank dealt with the rest of the world.
In a fractional reserve banking system
A. commercial banks are required to hold savings account in other banks as reserves against their deposits. B. commercial banks are required to hold a certain fraction of their deposits in reserves. C. all deposits must be held in reserves. D. commercial banks hold no deposits in reserve.
In considering euros and dollars, the rates of exchange for the euro and the dollar:
A. are directly related. B. are inversely related. C. are unrelated. D. move in the same direction.