If you have been consuming large quantities of ice cream on a hot summer afternoon and you decide to refrain from any additional consumption, it can be concluded that
A) total utility has reached a minimum and the marginal utility of an additional drink would be large.
B) total utility has reached a maximum and the marginal utility of an additional drink would be small.
C) total utility has reached a maximum and the marginal utility of an additional drink would be zero.
D) total utility has reached a minimum and the marginal utility of an additional drink would be negative.
Answer: C
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Market risk is:
A. risk that is broadly shared by the entire market or economy. B. risk that is unique to a particular company or asset. C. likely to be predictable, and generally reflected in interest rates. D. the reason the economy suffers inflation from time to time.
Figure 11-3
In Figure 11-3, which line represents the change in the consumption schedule caused by a cut in the personal income tax as advocated by President George W. Bush in 2001?
a.
C1 in graph (a)
b.
C2 in graph (a)
c.
C1 in graph (b)
d.
C2 in graph (b)
Which of the following members of the European Union has NOT adopted the euro?
A) Denmark B) Estonia C) Germany D) Greece
Compute the interest rate for a $1,000 face value a bond that sells for $280 and matures in 20 years. The bond has no coupon payments, only the face value payment.
What will be an ideal response?