The above table shows Homer's utility from boxes of doughnuts. As Homer's consumption of doughnuts increases, his
A) marginal utility is positive and increasing.
B) marginal utility is positive but decreasing.
C) marginal utility is negative but increasing.
D) marginal utility is negative and decreasing.
B
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Using Figure 1 below, if the aggregate demand curve shifts from AD2 to AD1 the result in the short run would be:
A. P1 and Y1.
B. P3 and Y1.
C. P4 and Y1.
D. P4 and Y2.
The flypaper theory of tax incidence
a. ignores the indirect effects of taxes. b. assumes that most taxes should be "stuck on " the rich. c. says that once a tax has been imposed, there is little chance of it changing, so in essence people are stuck with it. d. suggests that taxes are like flies because they are everywhere and will never go away.
Which of the following would both make a worker's wage higher than otherwise?
a. the work is safe, the employer pays an efficiency wage b. the work is safe, the employer does not pay an efficiency wage c. the work is dangerous, the employer pays an efficiency wage d. the work is dangerous, the employer does not pay and efficiency wage
Figure 9.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), what fraction of used refrigerators sold will actually be plums (high quality)?
A. 50/250 B. 50/300 C. 250/300 D. None of the refrigerators sold will be plums.