Rembrandt paintings are expensive and not as vital for life as milk, which is cheap
Marginal utility theory explains this paradox of value: The total utility from a Rembrandt painting is ________ than the total utility from milk, and the marginal utility from a Rembrandt painting is ________ than the marginal utility from milk. A) smaller; smaller
B) smaller; larger
C) larger; smaller
D) larger; larger
B
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A monopoly's marginal revenue is equal to the market price of its product
Indicate whether the statement is true or false
Banks use "credit-risk analysis" to
A) determine the appropriate interest rate to charge borrowers. B) determine whether to invest in the stock of a corporation. C) determine the appropriate interest rate to pay depositors. D) determine the likelihood of an audit by bank regulators.
Which of the following is a characteristic of an oligopoly market?
a. Each firm in an oligopoly market can take independent pricing and output decisions. b. There are many firms in an oligopoly market hence a firm cannot influence the market price. c. In an oligopoly market, each firm's pricing and output decisions depend on those of its rivals. d. Firms in an oligopoly market always manufacture differentiated products. e. Barriers to entry does not exist in an oligopoly market.
Expansionary policies are government stabilization policies intended to increase:
A. population. B. average labor productivity. C. spending. D. unemployment.