The concept of utility maximization:
A. is solely used to measure an individual's satisfaction with his consumption choices.
B. can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness.
C. assumes each individual seeks to increase his own personal satisfaction regardless of others.
D. None of these is true.
B. can be used broadly to think about choices made motivated by satisfaction, envy, status, or kindness.
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Which of the following changes to the market in the graph shown could cause the price floor to become non-binding?
A. Demand could decrease, and shift to the left.
B. Supply could increase, and shift to the left.
C. Supply could increase, and shift to the right.
D. Supply could decrease, and shift to the left.
To determine the number of workers hired, the firm
a. looks to where MRP = the wage rate. b. looks to the point of maximum difference between MRP and the wage rate. c. looks to the point of maximum MRP. d. looks to the point of MRP = 0.
In a floating exchange rate system, the equilibrium exchange rate is determined
a. by the price of the foreign currency b. by the government of the country issuing the foreign currency c. by the interest rate in the country issuing the foreign currency d. by the Federal Reserve e. at the intersection of the demand curve and supply curve for the foreign currency
The following provides data for an economy in a certain year. Consumption expenditures$1,000Imports$600Government purchases of goods and services$700Construction of new homes and apartments$500Sales of existing homes and apartments$600Exports$500Government payments to retirees$200Household purchases of durable goods$300Beginning-of-year inventory$500End-of-year inventory$600Business fixed investment$300Given the data, compute the investment component of GDP.
A. $900 B. $400 C. $300 D. $800