What is meant by utility?
What will be an ideal response?
Utility is the satisfaction (or reward) a product yields relative to its alternatives. It is the basis of choice.
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How do governments use spending and taxation to reduce inequality and poverty in an economy?
What will be an ideal response?
Business plan competitions at universities are simply the culmination of an academic exercise.
Answer the following statement(s) true (T) or false (F)
The above figure shows a competitive firm's demand for labor assuming that the firm's output sells for $1 per unit. If the wage is $5 per hour, a 2 percent cut in all the workers' income tax will cause the firm to
A) demand less labor. B) demand more labor. C) raise the wage paid to the worker. D) None of above.
According to the AS/AD model, if the economy is in a recession and the Fed wants to increase output and employment, it should:
A. raise reserve requirements. B. act to increase the money supply. C. act to decrease the money supply. D. raise interest rates.