Suppose that the marginal benefit per dollar spent on pop tarts is less than the marginal benefit per dollar spent on waffles. The consumer can always increase their utility by buying:
A. more pop tarts and fewer waffles.
B. fewer pop tarts and more waffles.
C. more of both goods.
D. The consumer cannot increase her utility.
Answer: B
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A country's gross national product (GNP) is
A) the value of all final goods and services produced by its factors of production and sold on the market in a given time period. B) the value of all intermediate goods and services produced by its factors of production and sold on the market in a given time period. C) the value of all final goods produced by its factors of production and sold on the market in a given time period. D) the value of all final goods and services produced by its factors of production and sold on the market. E) the value of all final goods and services produced by its factors of production, excluding land, and sold on the market in a given time period.
Which of the following would cause the money supply in the United States to expand?
A. a decrease in reserve requirements B. an increase in the discount rate C. the sale of U.S. government bonds by a Federal Reserve bank D. an increase in the world supply of gold
(Last Word) Leverage in the financial system:
A. magnifies profits but reduces losses. B. magnifies both profits and losses. C. reduces profits but magnifies losses. D. reduces both profits and losses.
Suppose that the price of a plasma TV is $1,200 in the United States and 13,200 pesos in Mexico. If the current exchange rate is 10 pesos to the dollar, then purchasing power parity theory would predict that in the long run
A. the exchange value of the dollar will depreciate. B. the exchange value of the peso will depreciate. C. Mexico will begin to import plasma TVs from the United States. D. the exchange value of the peso will appreciate.