A consumption function is used to illustrate the choices a consumer faces in a world of scarcity
a. True
b. False
Indicate whether the statement is true or false
False
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The term for the Fed's day-to-day technique for controlling the stock of money is called
A) discounting operations. B) interest-rate operations. C) liquidity operations. D) open heart operations. E) none of the above.
Elasticity is a measure of the responsiveness of change in quantity demanded to a change in price.
Answer the following statement true (T) or false (F)
Which of the following is an example of a negative externality?
A) There is an increase in injuries to pedestrians caused by accidents resulting from electronic billboards distracting drivers. B) The opening of a new shopping mall increases the business of nearby restaurants. C) A consumer pays a higher price than another consumer does for the same product. D) Consumers pay a sales tax in addition to the price of a product.
Which of the following is correct concerning a risk-averse person?
a. She would not play games where the probability of winning and losing a dollar are the same. b. She might not buy health insurance if she thinks her risks are low. c. Her marginal utility of wealth decreases as her income increases. d. All of the above are correct.