At her current level of consumption, Jess gets half as much marginal utility from an additional bagel as from an additional muffin. If the price of muffin is $2 each, then Jess is maximizing her utility if the price of a bagel is:
A. $2.00
B. $1.00
C. $1.50
D. $4.00
Answer: B
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If short-run equilibrium output equals 20,000 and full employment equals 25,000, then this economy has a(n)
A. employment gap. B. inflationary gap. C. demand gap. D. recessionary gap.
Which of the following is most closely related to the "fair results" approach to fairness?
A) efficient resource use B) having an equal income distribution C) voluntary exchange D) the command system of allocating resources E) price hikes in a natural disaster
The granite boulders in Rocky Mountain National Park are a favored place among talented climbers who specialize in the art of bouldering, or climbing harder (but shorter) routes without tying into a rope
Climbers have taken to (illegally) stashing foam crash pads underneath the boulders but marmots and other rodents chew up the pads and the litter is spread by the wind. To limit overuse of this park, suppose a limited number of permits are sold each year to climbers who can sell them at any time to other climbers. This method of achieving efficient use of a common resource is most like what government policy? A) Production quota B) Property right C) Individual transferable quota D) Marginal social benefit right
Which of the following is the most efficient means of trade?
A) barter B) money C) government rationing D) the combination of barter with some government rationing