Total utility is best defined as the:
A. Change in marginal utility multiplied by the price of a product
B. Maximum amount of satisfaction from consuming a product
C. Total satisfaction received from consuming a given amount of a product
D. Additional satisfaction received from consuming one more unit of a product
C. Total satisfaction received from consuming a given amount of a product
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Given the expected rate of return on all possible investment opportunities in the economy, a(n)
A. change in the real interest rate will have no impact on the level of investment. B. increase in the real rate of interest will tend to increase the level of investment. C. decrease in the real rate of interest will tend to decrease the level of investment. D. decrease in the real rate of interest will tend to increase the level of investment.
Pat gives up a $40,000 per year job to stay at home and take care of the house. By so doing, Pat saves $15,000 in child care and house cleaning services which he now performs himself. The direct effect on GDP from Pat's decision is a decrease of
A) $25,000. B) $15,000. C) $30,000. D) $40,000. E) $55,000.
A firm wishes to fire an employee. The company will save up to $300 . per month on his compensation package. It is estimated that the employee contributes around $4,100 to the company. The firm
a. Should not fire the employee because the benefits outweigh the costs b. Should fire the employee if the hidden cost of not firing him is $500 c. Should fire the employee if the hidden cost of not firing him is $1500 d. Need more information
Some economists argue that
A) discretionary monetary policy is ineffective because of its long identification lag. B) discretionary fiscal policy is ineffective because of its long recognition lag. C) discretionary monetary policy is ineffective because of its long implementation lag. D) discretionary fiscal policy is ineffective because of its long implementation lag.