Colin consumes both corned beef sandwiches and steak sandwiches. Corned beef is priced at $5.00 per sandwich and steak sandwiches are priced at $8.00 . Which of the following marginal utility pairs is consistent with Colin's consumer equilibrium at these prices?
a. MU of corned beef sandwich = 1; MU of steak sandwich = 1
b. MU of corned beef sandwich = 1; MU of steak sandwich = 1.6
c. MU of corned beef sandwich = 1.6; MU of steak sandwich = 1
d. MU of corned beef sandwich = 1; MU of steak sandwich = 5
b
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A consumer maximizes her total utility from a bundle of goods when her marginal utility from each good is equal
Indicate whether the statement is true or false
Term limits on political offices have all of the following properties except:
A. prevent officials from holding office for longer than a certain amount of time. B. discourage corruption by ensuring that one person isn't allowed to hold onto power for too long. C. can encourage corruption in reality by placing an official in power with no incentive to answer to his constituency. D. encourage people to run for multiple different political offices.
In which of the following situations would a worker have the greatest real income?
a. She receives a pay cut and her nominal wage falls by 5 percent, while the CPI falls by 20 percent. b. She receives a pay cut and her nominal wage falls by 5 percent, while the CPI increases by 10 percent. c. Her nominal wage remains the same, as does the CPI. d. She receives a raise and her nominal wage increases by 5 percent, while the CPI increases by 10 percent. e. She receives a raise and her salary increases by 5 percent, while the CPI falls by 5 percent.
Fernando allocates his lunch money between pizza and Coke. A slice of pizza costs $1.50 and a can of Coke costs $1. The marginal utility of the last slice of pizza Fernando ate that day was 30 units, and the marginal utility of the last can of Coke was 25 units. If Fernando decides to spend all of his lunch money, then identify the correct statement
a. ?Fernando could have increased his total utility by purchasing more Coke and the same quantity of pizza. b. ?Fernando could have increased his total utility by purchasing more pizza and the same quantity of Coke. c. ?Fernando allocates his money so as to maximize his total utility. d. ?Fernando's total utility would have been greater if he had purchased more pizza and less Coke. e. ?Fernando's total utility would have been greater if he had purchased more Coke and less pizza.