If a commodity is inexpensive and its total utility great,
a. it is an inferior good.
b. it is plentiful.
c. its marginal utility is high.
d. the ratio of price to marginal utility is very high.
b
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Which of the following countries has higher income mobility than the United States?
A. Denmark B. Canada C. France D. All of these countries have higher income mobility than the United States.
A reduction in the user cost of capital leads firms to ________ their profit by ________ their capital-output ratio
A) raise, increasing B) raise, decreasing C) lower, increasing D) lower, decreasing
The information to be gathered for a decision depends on which of the following?
a. The current market conditions and on the expected costs and benefits of acquiring the information. b. The model that underlies a decision and on the expected costs and benefits of acquiring the information. c. The cost of the information and the current market conditions. d. The model that underlies a decision and the amount of information that is internally available.
If a monopolistically competitive firm engages in a successful advertising campaign resulting in above positive economic profits then in the long run that firm will
a. continue to earn positive economic profits because successful advertising is one of the barriers to entry b. earn zero economic profits because the government will begin to regulate the industry c. earn negative economic profits because it won't be able to advertise indefinitely d. earn zero economic profits because other firms will also begin to advertise e. continue to earn positive economic profits because most monopolistically competitive firms can earn economic profits in the long run