-Refer to the Above Table

question 225

Multiple Choice

-Refer to the above table. The marginal utility of the 2nd movie for Robert is

• A) 95 units of utility.
• B) 90 units of utility.
• C) 80 units of utility.
• D) 190 units of utility.

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust with economic conditions to stabilize income and spending.

Recession

An interval of momentary economic contraction characterized by decreased commercial and industrial operations, commonly signaled by a reduction in Gross Domestic Product over two back-to-back quarters.

Government Budget Deficit

The financial situation that occurs when a government's expenditures exceed its revenues in a given fiscal year.

Automatic Stabilizer

Economic policies and programs, like unemployment insurance and progressive taxation, designed to automatically adjust to changes in economic conditions to stabilize the economy.