Which of the Following Is Correct

question 30

Multiple Choice

Which of the following is correct?

• A)Over the business cycle investment fluctuates more than consumption.
• B)Economic fluctuations are easy to predict.
• C)During recessions employment rises.
• D)Because of government policy the U.S.had zero recessions in the last 25 years.

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Definitions:

Utility-Maximizing

The process by which individuals choose consumption bundles that will give them the greatest amount of satisfaction or utility.

Diminishing Marginal Utility

The decrease in satisfaction or usefulness as additional units of a product are consumed.

Staples

Basic or essential food items or goods that are widely used and regularly consumed by households.

Paper Clips

Tiny segments of twisted wire or plastic designed to keep pages of paper attached.