Kathy eats five slices of pizza on a Saturday night but admits each slice of pizza doesn't taste as good as the previous one. This suggests that for Kathy the
A. marginal utility of a slice of pizza is positive but decreasing.
B. total utility of slices of pizza is increasing by larger and larger increments.
C. total utility of slices of pizza is declining.
D. marginal utility of a slice of pizza is negative.
Answer: A
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If Country A can produce an extra plane by giving up two boats, and Country B can produce an extra plane by giving up three boats, then
A) Country A has an absolute advantage in producing planes and a comparative advantage in producing boats. B) The two countries have no incentive to trade with one another. C) Country A would like to trade with B, but B cannot gain by trading with A. D) Country B has a comparative advantage over Country A in the production of planes. E) Country A has a comparative advantage over Country B in the production of planes.
"If the price of a ticket to Sea World exceeds the marginal cost of the ticket by $13, a producer surplus exists for Sea World." Is this statement true or false?
What will be an ideal response?
The fungibility of money means that
A. the categories people create to organize their expenditures are meaningless in financial terms. B. people often create false distinctions between categories of debt. C. thinking large, one-time expenses should be paid off over a period of time, while everyday expenses should come out of your checking account, is irrational. D. All of these statements are true.
Which of the following will NOT cause the IS curve to shift to the left?
A. A contractionary fiscal policy B. An exogenous decrease in household consumption C. An exogenous decrease in exports D. An exogenous decrease in imports