The amount of additional satisfaction derived from an additional unit of a good or service is called:
a. total utility
b. marginal cost.
c. total cost.
d. marginal utility.
d
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Refer to Figure 10-4. What is the marginal rate of substitution for one bar of chocolate between g and h?
A) of a cookie. B) of a cookie. C) 2 cookies. D) 3 cookies.
Herd behavior can best be described as
A) the large number of investors involved in the stock market. B) how large participation in financial markets increase market efficiency. C) informed investors can outperform relatively uninformed investors. D) relatively uninformed investors follow the behavior of other investors instead of consider fundamentals.
Which of the following policies could the Fed use to lower the interest rate?
a. A tax cut. b. Selling government securities. c. Raising the discount rate. d. Reducing the required reserve ratio.
Assume that the government increases spending and finances the expenditures by borrowing in the domestic capital markets. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and GDP Price Index in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and GDP Price Index rises. b. There is not enough information to determine what happens to these two macroeconomic variables. c. The real risk-free interest rate and GDP Price Index remain the same. d. The real risk-free interest rate falls, and GDP Price Index falls. e. The real risk-free interest rate rises, and GDP Price Index falls.