The word "util" has been used by economists in the past as an objective measure of utility. Today economists believe that
A) the util truly is an objective, rather than a subjective, measure of utility.
B) utility can be measured objectively because people can use prices of different goods to measure utility.
C) utility cannot be measured objectively.
D) all of the important conclusions of the economic model of consumer behavior depend on utility being measured objectively.
C
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Moral hazard arises when principals find it costly to monitor agents
Indicate whether the statement is true or false
Suppose current sales increase by $100 million. Investment theory suggests that current investment must
A) decrease exactly by $100 million. B) increase by exactly $100 million. C) increase by less than $100 million. D) decrease, but by less than $100 million. E) none of the above
Explain two economic costs, and two human costs of unemployment.
What will be an ideal response?
For any competitive labor market, changes that increase the opportunity cost of work will:
A. increase the labor supply and shift the supply curve right. B. decrease the labor supply and shift the supply curve right. C. decrease the labor supply and shift the supply curve left. D. increase the labor supply and shift the supply curve left.