Modern economists measure how much utility Fred gets from a hot dog by
a. asking Fred how many utils he gets from its consumption.
b. examining the price of the hamburger Fred chose not to buy.
c. asking Fred how much of some other good he would give up to get the hot dog. The "other good" can be any good except money.
d. asking Fred how much of some other good he would give up to get the hot dog. The "other good" can be any good, including money.
d
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For all intents and purposes, the Great Depression ended in
A. 1933. B. 1937. C. 1941. D. 1945.
The multiplier effect suggests that:
A. a ripple effect occurs from one person's initial spending. B. government spending $1 will create more than a $1 increase in GDP. C. a tax cut will increase GDP by more than the amount of the initial tax cut. D. All of these are true.
Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any, will this have on the firm's AFC (average fixed cost), AVC (average variable cost), ATC (average total cost) and MC (marginal cost) and therefore these cost curves? Why?
In the market for money, the behavior of savers is represented by the
A. supply curve. B. demand curve. C. a combination of the supply and demand curves. D. neither the supply curve nor the demand curve.