A consumer is buying the optimal amount of goods when
A) the total utility from the purchases on all the goods purchased is the same.
B) the marginal utility from the purchases of all the goods purchased is the same.
C) the marginal utility per last dollar spent on all of the goods purchased is the same.
D) the marginal utility from the purchases of all the goods is equal to 1.
Answer: C
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Refer to Table 2-2. According to the law of comparative advantage, both Honduras and Nicaragua could gain if
a. Honduras produced all of the apples and oranges and Nicaragua did not produce anything. b. Honduras specialized in producing apples, Nicaragua specialized in producing oranges, and they traded. c. Honduras specialized in producing oranges, Nicaragua specialized in producing apples, and they traded. d. Nicaragua and Honduras were both were self-sufficient and did not trade.
If government decides to produce a collective consumption good, taxes have to be levied to finance the production. In evaluating government provision then, the benefits of public production have to be _____
a. high b. weighed against the excess burden of taxation c. positive d. weighted against the tax incidence on poor families
The primary benefits derived from tariffs usually accrue to the:
A. domestic consumers of goods protected by the tariffs. B. foreign producers of goods protected by the tariffs. C. domestic producers of export goods. D. domestic suppliers of goods protected by the tariffs.
If the number of unemployed workers is 19 million, the number in the working-age population is 500 million, and the unemployment rate is 4%, what is the labor force participation rate?
A) 4.75% B) 7.8% C) 95% D) 96.2%