Recall the Application about how marginal utility changes with the quantity consumed to answer the following question(s). Neuroscientists offered subjects in an experiment varying monetary rewards, and observed the neural activity in a subject's striatum region of the brain.Recall the Application. The larger the monetary reward offered to the subjects in the experiment:
A. the higher the marginal utility and total utility of the reward money.
B. the lower the marginal utility and total utility of the reward money.
C. the lower the marginal utility and higher the total utility of the reward money.
D. the higher the marginal utility and lower the total utility of the reward money.
Answer: C
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Mr. Smith earned a salary of $5,000 in in 1980 while his son earned a salary of $8,000 in 2010. If the price index for 1980 was 100 and that for 2010 was 198, whose salary was worth more? Explain your answer
What will be an ideal response?
A perfectly elastic demand curve for a firm
A. is represented by a vertical line. B. means that with every unit price increase there will be a unit decrease in demand. C. is formulated by P× Q = a constant, for all prices and quantities. D. indicates that any increase in price will eliminate all purchases of its product.
A restaurant offers an "all you can eat" meal for $9 . Tyrone has eaten three servings and is trying to decide whether or not to go back for a fourth. The economic way of thinking suggests that Tyrone should go back for the fourth serving if and only if
a. his marginal benefit of the additional serving is greater than zero. b. his marginal benefit of the additional serving is at least $3. c. his marginal benefit of the additional serving is $9 or more. d. his total value from the meal exceeds $9.
Which of the following is the clearest evidence of employment discrimination against minority employees?
a. The average wages of minority workers are lower than the average wages of whites. b. The average wages of minority employees are lower than the average wages of whites with similar productivity characteristics. c. The mean number of years of schooling of minority workers is lower than that of whites. d. The average hours worked by minority employees exceeds the hours worked by whites.