The word "util" has been used by economists in the past as an objective measure of utility. Today economists believe that
A) the util truly is an objective, rather than a subjective, measure of utility.
B) utility can be measured objectively because people can use prices of different goods to measure utility.
C) utility cannot be measured objectively.
D) all of the important conclusions of the economic model of consumer behavior depend on utility being measured objectively.
C
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Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment?
A) cyclical unemployment B) frictional unemployment C) structural unemployment D) None of the above answers is correct.
Last month Laura saw the value of her stock portfolio rise by $20,000. This month she saw the value of her portfolio decline by $20,000. According to behavioral economics:
A. the positive utility Laura received from seeing her portfolio value rise was equal to the disutility she felt when its value declined. B. Laura should not invest in stocks unless the utility she receives from gains is at least as great as the disutility she feels from losses. C. the positive utility Laura received from seeing her portfolio value rise was greater than the disutility she felt when its value declined. D. the positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.