Scott and Tom have dinner together at a new restaurant, and they discover that the portions are huge but taking home leftovers is not allowed. When both decide they are full, Scott forces himself to finish the rest of the food on his plate even though he doesn't really want to, while Tom asks the waiter to remove his plate while it still contains some food. How would an economist describe this behavior?
A. Scott acted rationally, because the food otherwise would have been thrown away.
B. Tom acted rationally, maximizing his utility.
C. Both Tom and Scott acted rationally.
D. Both Tom and Scott acted irrationally.
B. Tom acted rationally, maximizing his utility.
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Refer to the table below. If the attorney reviews 53 patents, what is the expected marginal benefit of reviewing the 53rd patent?
The above table shows the quantity of patents reviewed by a firm's attorney and the corresponding probability that the firm will infringe on another firm's patent. The cost of infringement is $50,000.
A) -$20,000
B) $2,000
C) $20,000
D) -$2,000
The marginal physical product of labor in Figure 21.1 is negative for the
A. Fourth worker. B. Fifth worker. C. Third worker. D. Sixth worker.
Roy just got a big promotion at work which includes a sizable pay increase. Roy's demand for Ramen Noodles, an inferior good, will likely:
A. decrease, and his demand curve will shift to the left. B. increase, and his demand curve will shift to the right. C. decrease, causing a movement down along his demand curve. D. decrease, and his demand curve will shift to the right.
The price system ultimately determines the allocation of resources among producers.
Answer the following statement true (T) or false (F)