The value of a good to a consumer depends on
a. its total utility
b. the marginal utility of the first unit consumed
c. the average utility of the units consumed
d. the marginal utility of the last unit consumed
e. the ratio of its marginal utility to total utility
d. the marginal utility of the last unit consumed
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Which of the following statements is most correct?
A. Reserves are assets of the central bank and liabilities of the commercial banks. B. Reserves are assets of the commercial banks and liabilities of the central bank. C. Reserves are assets of the central bank and liabilities of the U.S. Treasury. D. Reserves are liabilities of the commercial banks and assets of the U.S. Treasury.
An increase in rent would
A. increase the demand for land. B. decrease the demand for land. C. decrease the supply of land. D. None of the choices are correct.
In analyzing the gasoline tax and subsidy policy discussed in the text, the final solution illustrates that
A. the government is made better off financially. B. consumers do not cut back on fuel consumption. C. consumers are worse off than they were before the policy began. D. social welfare increases.
Which of the following statements represents bad decision making?
A. I've put in so much time on this paper, I can't quit now. B. I've already paid for the ticket so I might as well stay to the end. C. I've already spent 3 years in the college so I can't drop out and go to work now. D. My stock has dropped $10 a share so I can't afford to sell it now. E. all of the above.