If the total utility for eating up to five $2.00 hamburgers is 40, 60, 70, 75, 70, respectively, which of the following is true?
a. A rational consumer would choose to eat five hamburgers at the price of $2.00
b. A rational consumer would choose to eat five hamburgers only if the price was reduced to $1.00.
c. A rational consumer would choose to eat five hamburgers only if the 5th hamburger as free.
d. A rational consumer would have to be compensated to eat the 5th hamburger.
d
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In the economic way of thinking, private property rights provide people with
A) rules of the game. B) dependable information. C) incentives. D) none of the above. E) all of the above.
Assuming the demand curve is downward sloping, as price increases, the price elasticity of demand for a good (in absolute value) and marginal revenue:
A) increase. B) stay the same. C) decrease. D) cannot be determined.
Legal entitlement to scientific discoveries, inventions, innovations and intellectual property
A) reduces the incentive to invest in research and development. B) results in an equal distribution of income and profits. C) encourages technological advancements. D) protects production on the basis of tradition, social customs and habits.
If the center nation operates under a cooperative peg agreement, how does the cooperation work?
A) The home nation will try to resist any changes coming from the center. B) The home nation will accept all changes coming from the center without discussion. C) The center nation will make policy concessions to other nations in its cooperative currency agreement. D) Cooperation usually does not work well.