Suppose Renee can increase her total utility from consuming video rentals and books by buying one more book and renting one fewer video. Which of the following is true?
A) The marginal utility of video rentals is negative.
B) The marginal utility of the last book consumed exceeds the marginal utility of the last video rental consumed.
C) The marginal utility of the last video rental consumed exceeds the marginal utility of the last book consumed.
D) The marginal utility per dollar spent on books exceeds that of video rentals.
D
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Which of the policies of the U.S. Federal Reserve would most closely match the monetary policy most often used by the ECB?
A) open-market operations B) discount policy C) margin requirements D) reserve requirements changes
Answer the following statements true (T) or false (F)
1. The study of economics is not useful for consumers because economic analysis focuses only on businesses and the economy. 2. The scientific method does not apply to economics because economics studies human behavior which cannot be generalized. 3. Economic principles are value judgments about what the economy should be like or the way the economic world ought to be. 4. If falling gasoline prices are good for the consumers, then it must be good everyone in the economy.