For a risk averse person, an increase in wealth brings ________ total utility of wealth and ________ marginal utility of wealth
A) higher; higher
B) higher; lower
C) lower; higher
D) lower; lower
B
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Which of the following will tend to make oil extraction more economical?
A) rising oil prices B) additional oil exploration C) conservation measures D) development of oil substitutes
Which of the following actions would help the Fed increase the supply of money in the economy?
a. buying government bonds b. raising the reserve ratio c. selling government bonds d. raising the discount rate
In the absence of technological progress, we know with certainty that an decrease in the saving rate will cause which of the following?
A) decrease steady state consumption B) increase steady state consumption C) have no effect on steady state consumption D) decrease steady state consumption only if the decrease in saving exceeds the increase in depreciation E) decrease steady state consumption only if the decrease in saving is less than the decrease in depreciation
Suppose the price elasticity of supply for crude oil is 2.5. How much would price have to rise to increase production by 20 percent?
A. 8 percent B. 12.5 percent C. 20 percent D. 45 percent