If the Marginal utility of the first bar of chocolate that Dan eats is 5 utils, then which of the following is most likely to be true?
a) Dan will eat 5 bars of chocolate.
b) The marginal utility of the second bar of chocolate that Dan eats will be less than 5 utils.
c) The marginal utility of the second bar of chocolate that Dan eats will be greater than 5 utils.
d) None of the above.
Answer: b) The marginal utility of the second bar of chocolate that Dan eats will be less than 5 utils.
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Market supply for a private good is found by
a. vertically summing all market prices for a given quantity b. horizontally summing the quantity decisions of producers at each and every price c. adding the price-quantity pairs for all units sold d. none of the above
For each of the following, how would they be included in the national income accounts? a. The University of California buys a new computer. b. Charles buys a new MP3 player. c. Marian buys a new mountain cabin. d. Vikki buys an old mansion with hopes of restoring it. e. Farmer Brown buys a used combine harvester.
What will be an ideal response?
Which of the following best describes an adverse outcome of short-term government deficits?
a. In the short run, a government that runs a small budget deficit can shift aggregate demand to the right and trigger severe inflation. b. In the short run, a government that runs a very large budget deficit can shift aggregate demand to the left and trigger severe inflation. c. In the short run, a government that runs a very large budget deficit can shift aggregate demand to the right and trigger severe inflation. d. In the short run, a government that runs a small budget deficit can shift aggregate demand to the left and trigger severe inflation.
Because of "mental accounting:"
A. people are better able to process price changes than changes in product sizes. B. people tend to be less risk averse. C. people pay too little on their monthly credit card bills. D. people isolate purchases and sometimes make irrational decisions.