Alice has spent all of her income on ten different goods, and knows that the marginal utilities per dollar spent on the ten goods are equal. Which of the following statements is correct?
a. She could possibly increase her total utility by redistributing her income among the ten items.
b. She has violated the assumption of rationality.
c. The law of diminishing marginal utility does not apply to her.
d. Any reallocation of income among the ten items will reduce her total utility.
e. She must be at a point inside of her budget line.
D
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The FDIC insures deposits in: a. all the commercial banks across the U.S
b. Federal Reserve member banks only. c. any banking institution that sells FDIC insurance. d. any banking institution that purchases FDIC insurance. e. any bank approved by the Fed.
P-TV and QRS-TV are trying to decide whether to air a sitcom or a reality show in a given time slot. Viewers like both sitcoms and reality shows, but sitcoms are more expensive to produce than reality shows since real actors need to be hired. QRS-TV makes its decision first, and then P-TV observes that choice before making its decision. Both stations know all of the information in the decision tree below. 
P-TV will air a sitcom:
A. only if QRS-TV is also airing a sitcom. B. no matter what QRS-TV does. C. never. D. only if QRS-TV is airing a reality show.
In economics, utility is defined as
A. the usefulness of a good or service. B. the objective measure of the desirability of a good or service. C. the want-satisfying power of a good or service. D. the utilitarian value of a good or service.