Marginal utility is defined as:
A. the extra satisfaction the consumer receives from an extra $1 of income.
B. the total level of satisfaction a consumer receives upon the consumption of a certain number of goods.
C. the number of hours a consumer would be willing to work to receive a certain product.
D. the extra satisfaction a person derives from consuming an additional unit of a good.
Answer: D
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Why may a central bank intervene in the foreign exchange market when its currency is depreciating?
A) concerns about the country's exports becoming less competitive B) concerns about inflation C) concerns about deflation D) to sterilize the effects on the domestic economy
Economists generally believe that
a. buyers and sellers have all the information they can use b. additional information is costly to acquire c. decision makers have complete knowledge of all the alternatives available d. economic decisions result from random behavior e. decision makers never make mistakes