Which of the following statements is correct?
A) Utility and usefulness are synonymous.
B) The marginal utility derived from successive units of a product tends to be similar for all consumers.
C) Because utility is not measurable, the utility-maximizing rule provides no useful insights as to consumer behavior.
D) A product may yield utility, but not be functionally useful.
Ans: D) A product may yield utility, but not be functionally useful.
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If the real interest rate rises, the quantity of investment demanded:
A. will fall. B. will not change. C. will rise. D. could rise or fall.
The last time the U.S. Post Office raised its prices for mail service critics of the rate increase argued that the Post Office's revenues would actually decline as a result of the price increase. It can be concluded that:
A) both groups believe demand is elastic, but for different reasons. B) both groups believe demand is inelastic, but for different reasons. C) the Post Office believes demand for mail service is elastic; opponents of the price increase believe demand is inelastic. D) the Post Office believes demand for mail service is inelastic; opponents of the price increase believe demand is elastic.