Modern economists measure how much utility Fred gets from a hot dog by
A. asking Fred how many utils he gets from its consumption.
B. examining the price of the hamburger Fred chose not to buy.
C. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good except money.
D. asking Fred how much of some other good he would give up to get the hot dog. The “other good” can be any good, including money.
Answer: D
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The U.S. dollar will appreciate in value if
A) the demand curve for U.S. dollars shifts rightward. B) the demand curve for U.S. dollars shifts leftward. C) the supply curve of U.S. dollars shifts rightward. D) Americans choose to buy more foreign goods.
The financial market shock which occurred during the recession of 2007-2009 increased the default-risk premium, causing the
A) IS curve to shift to the right. B) IS curve to shift to the left. C) MP curve to shift up. D) MP curve to shift down.