If the price of good A falls, it will:
a. increase a consumer's total utility from the consumption of that good
b. increase a consumer's marginal utility from consuming the last unit of that good.
c. decrease a consumer's marginal utility from consuming the last unit of that good.
d. do both (a) and (c).
d
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An international organization that buys and sells a commodity to maintain its price is a
a. buffer stock b. common fund c. commodity stabilization fund d. customs union e. all of the above
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y ? L and this person has no non-labor income
Assuming a wage rate of $10 per hour, show what happens to the person's labor supply when the person wins a lottery prize of $100 per day.
A rational citizen may decide not to vote __________.
a. but is then behaving in an irrational manner even if they are utility maximizing b. if the issues are not interesting to them even though the cost of obtaining information and voting are low c. if the cost of obtaining information about the issues and voting are greater than the chance their one vote will influence the election d. if the benefits of voting are low or non-existent even when the costs of voting are low
Describe the three purposes that money must perform.
What will be an ideal response?