Utility is:
A. useful in comparing the relative satisfaction different consumers get from a particular good.
B. useful in predicting when to put an item on sale.
C. useful in quantitatively describing a person's preferences for one good over another.
D. an interesting concept, but not really useful for anything.
C. useful in quantitatively describing a person's preferences for one good over another.
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For a closed economy with no government, we know that at every level of GDP actual investment equals
A) the difference between planned investment and actual saving. B) the difference between planned saving and actual saving. C) planned investment. D) planned saving.
Refer to the figure above. If the economy of Barylia opens up to free trade, then which of the following statements is true?
A) Barylia will start importing calculators. B) Barylia will start exporting calculators. C) Domestic consumers will purchase a greater quantity of calculators than before. D) The production and purchase of calculators within Barylia will remain the same as before.
When the price of a pizza decreases from $14 to $12
A) the income effect means people buy less pizza. B) the income effect points out that the total purchasing power of people who buy pizza increases. C) the income effect means that the demand for pizza will not change. D) None of the above answers is correct.
Welfare data show that in the United States
a. most welfare recipients receive benefits only for a short time b. welfare encourages young women to have children c. children brought up on welfare tend to remain on welfare as adults d. having poor parents does not increase the chances of a child's being on welfare as an adult e. children of poor parents have a 50 percent chance of being middle-income adults