Joan is deciding where to spend her spring break. If she goes to Cancún, Mexico, the trip will give her 9,000 units of utility and will cost her $300. If she travels to Florida instead, the trip will give her 8,000 units of utility and will cost her only $200. Joan will do best going to:
A. Mexico because her total pleasure will be greater.
B. Florida because her pleasure per dollar will be greater.
C. Mexico because her pleasure per dollar will be greater.
D. Florida because her total cost will be lower.
Answer: B
You might also like to view...
Automatic stabilizers refer to
A) changes in the money supply and interest rates that are intended to achieve macroeconomic policy objectives. B) the money supply and interest rates that automatically increase or decrease along with the business cycle. C) changes in federal taxes and purchases that are intended to achieve macroeconomic policy objectives. D) government spending and taxes that automatically increase or decrease along with the business cycle.
How many people are unemployed if the employment ratio is 75%, there are 90 million people employed, and there are 20 million people not in the labor force?
A) 20 million B) 10 million C) 5 million D) 0 million
The value of money changes over time because:
A. the government collects taxes. B. there is an opportunity cost of waiting for money in the future. C. people prefer to save money rather than spend it immediately. D. none of the reasons listed here cause the value of money to change over time.
In pure competition, the industry demand curve is infinitely price elastic.
Answer the following statement true (T) or false (F)