Suppose the first hour of study today will allow you to answer 10 correct questions on tomorrow's exam. After the first hour, the marginal benefit of each additional hour of study is reduced by 2 (meaning if you study for 2 hours today your total number of correct response tomorrow will be 18 and if you study 3 hours it will be 24 and so on). If the cost of studying each additional hour is zero, how many hours should you study?

The Ricardo-Barro effect is based on the idea that ________ when the government has a budget deficit

A) investment demand increases because expected future profits increase B) people decrease their private saving C) investment demand decreases because of the higher real interest rate D) people immediately increase their tax payments E) people increase their private saving

To an economist, "value" is the same as

A) marginal cost. B) consumer surplus. C) the minimum price that people are willing to pay for another unit of the good. D) marginal benefit. E) total surplus.