Adhira buys chocolates and almonds. She has 3 bars of chocolates and 4 bags of almonds. The marginal utility of the third chocolate bar is 18 units of utility and the marginal utility from the fourth bag of almonds is also 18
Is Adhira maximizing her utility?
A) No, she must buy 1 more chocolate bar to equate her quantities of the two goods.
B) No, she must cut back to 3 bags of almonds to equate her quantities of the two goods.
C) No, without information on her income and the prices of the two goods, we cannot answer the question.
D) Yes, the marginal utility from the last unit of each good is equal.
C
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If Paul decides to buy a $60 ticket to a Cirque du Soleil show rather than a $45 ticket for a Blue Man Group performance, we can conclude that
A) the marginal utility per dollar spent on Cirque du Soleil is higher than the marginal utility per dollar spent on Blue Man Group. B) the marginal utility per dollar spent on Cirque du Soleil is lower than the marginal utility per dollar spent on Blue Man Group. C) Paul is not making a rational choice. D) Paul's demand for a ticket to see Cirque du Soleil is more elastic than his demand for a ticket to see Blue Man Group.
Which of the following is an example of hidden actions?
a. a mechanic tells you that you need an entire new engine when you only need a oil change. b. a sales person tells you that you look good in a dress when you don't c. a sales person tells you which color they think goes best with your paint you have chosen d. a sales person tells you which car gets the best gas mileage
International ticket prices between 10 months and three months before departure, the average price of tickets sold range between about $________and $_______. Then about _______________ before departure, airlines start raising.prices.
Fill in the blank(s) with the appropriate word(s).
Figure 18-3
displays the international currency market for yen in terms of dollars and dollars in terms of yen. The supply curve in graph (A) is comprised of
a.
U.S. citizens attempting to purchase Japanese-made goods.
b.
Japanese attempting to purchase U.S.-made goods.
c.
U.S. businesses attempting to sell to the Japanese.
d.
Japanese businesses attempting to sell to the U.S.
e.
the U.S. government attempting to unload dollars to the international market.