Suppose you want to maximize your total utility. If your marginal utility per dollar spent is higher for one good than for all others, then you should:
A. spend more on all goods.
B. reallocate your spending away from that good.
C. reallocate your spending towards that good.
D. spend less on all goods.
Answer: C
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Which of the following statements is correct?
A. Managerial decisions are affected by both microeconomic and macroeconomic forces. B. Managerial decisions are affected primarily by macroeconomic forces. C. By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces. D. Managerial decisions are affected primarily by microeconomic forces.
Which of the following is an example of an explicit income transfer?
A. A Social Security pension paid to a retired factory worker. B. The paycheck received by a person who missed work last week because of vacation. C. The check received by a person currently employed by the postal service. D. A payment to a member of the U.S. Army who has recently been transferred to Germany.
At free-trade prices, a tennis racquet in Country A, a small country, sells for $100 and contains $40 worth of aluminum inputs and $30 worth of plastic. In Country A, the nominal tariff rates are 40 percent on tennis racquets, 20 percent on aluminum, and 10 percent on plastic. Based on this information, what is the effective rate of protection for the racquet industry in Country A?
A. 10% B. 40% C. 133?% D. 96?%
A demand curve is defined as the relationship between:
A. the price of a good and the quantity of that good that consumers are willing to buy. B. the price of a good and the quantity of that good that producers are willing to sell. C. the income of consumers and the quantity of a good that consumers are willing to buy. D. the income of consumers and the quantity of a good that producers are willing to sell.