You consider yourself to be a rational consumer. The marginal utility/price ratio of coffee is 12 utils per dollar. If the price of a donut is $0.75, you should only buy the donut if it gives you at least
A) 16 utils of satisfaction.
B) 9 utils of satisfaction.
C) 12 utils of satisfaction.
D) The answer cannot be determined with this information.
Answer: B
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Refer to Figure 5-3. In the absence of any government intervention, the private market
A) underproduces by Qo - Qm units. B) underproduces by Qn - Qm units. C) overproduces by Qn - Qm units. D) overproduces by Qo - Qm units.
The minimum-leverage-ratio approach to capital adequacy requirements
A) has been dominant since the 1930s. B) was phased out in the 1990s. C) was adopted in the 1990s. D) has never been implemented.
Which of the following is the best definition of what economists define as total income?
A) payment for labor services B) payment for labor services and for ownership of other factors of production C) payment for labor services, for use of other factors of production, and gifts and government transfers D) inheritance
____ mean that the costs involved cannot be recouped for a considerable period of time.
A. Sunk costs B. Opportunity costs C. Overheads D. Restructuring costs