The additional satisfaction that a consumer receives from one more unit of a good or service is known as _____
a. marginal utility
b. total utility
c. disutility
d. profit
e. the law of diminishing marginal utility
a
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When young students are hungry, they can be disruptive and inattentive in class. Thus, providing lunch to students has external benefits. The figure above represents the market for school lunches before and after government vouchers are issued
a. What is the unregulated private market equilibrium? b. What is the efficient quantity of lunches? c. What is the amount of the voucher necessary to move the economy to the efficient number of lunches? d. When vouchers are used, what is the dollar price of the lunch that suppliers receive and what is the dollar price that consumers pay when the voucher is used?
Which one of the following must a central bank must be concerned about driving most of the country’s existing banks into bankruptcy?
a. a large and unexpected exchange rate appreciation b. a large and unexpected interest rate increase c. a large and unexpected exchange rate depreciation d. a large and unexpected increase in foreign investments
Which of the following market structures describe an industry in which a group of firms formally agree to control prices and output of a product?
a. Perfect competition b. Oligopoly c. Cartel d. Monopoly
If we have a stock selling for $95.00 and a call option for this stock has a strike price of $82.00 and an option price of $13.60:
A. the intrinsic value is $0 since the option is out of the money. B. the intrinsic value of the option is $13.00 and the time value of the option is $0.60. C. the intrinsic value is $82.00 and the time value of the option is $13.60. D. the intrinsic value of the option is $0.60 and the time value of the option is $13.00.