In purchasing diamonds and water, a consumer would maximize utility by
a. dividing expenditure equally between those two goods
b. equating the marginal utilities from each of those two goods
c. equating average utility per diamond with average utility per unit of water
d. equating the total utility per diamond with the total utility per unit of water
e. equating marginal utility per dollar spent on each of those two goods
E
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Refer to Table 6-8. What is the most distinctive feature of the supply curve?
A) The supply curve is horizontal. B) The supply curve is upward sloping. C) The supply curve is perfectly elastic. D) The supply curve is perfectly inelastic.
Which of the following is a true statement?
a. A price-taker firm can sell additional units of output without having to lower its price, while a price-searcher firm must lower its price in order to sell additional units. b. A price-searcher firm can sell additional units of output without having to lower its price, while a price-taker firm must lower its price in order to sell additional units. c. Both price searchers and price takers can sell additional units of output without having to lower their price. d. Both price searchers and price takers must lower their price in order to sell additional units of output.
Which of the following will cause an increase in consumer surplus?
a. an increase in the production cost of the good b. a technological improvement in the production of the good c. a decrease in the number of sellers of the good d. the imposition of a binding price floor in the market
Which of the following would be considered human capital?
a. the financial capital a person earns over a lifetime of investing b. the machinery a worker uses to produce a product c. the training a worker receives when starting a new job d. the break room in a factory where employees go to have coffee