Consumer's surplus is a measure of how much
a. less than his income a consumer spends on goods.
b. more utility a consumer receives from his purchases than he has to pay for them.
c. a consumer's marginal utility differs from his total utility.
d. a change in price induces a consumer to substitute other goods.
b
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When the feedback effects from income to the money market are included,
a. a given change in the money supply will cause a smaller change in the quantity of money demanded. b. a given change in the money supply will cause a larger change in the interest rate c. given change in the money supply will cause no change in the interest rate d. a given change in the money supply will cause a smaller change in the interest rate e. a given change in the money supply will cause a larger change in the quantity of money demanded.
Billy is deciding whether to watch TV at home or go spend time with his friends. If Billy decides to stay home, we can conclude that:
A. Billy is a homebody and never goes out. B. Billy will get more utility from watching TV than spending time with his friends. C. Billy will regret not spending more time with his friends. D. Billy's revealed preference is to always be alone.