Suppose Chris's marginal utility from the first taco he eats is 15, and his marginal utility from the second taco he eats is 12. One can infer that:
A. Chris should eat two tacos.
B. Chris's total utility from eating two tacos is 27.
C. Chris's average utility from eating two tacos is 27.
D. Chris should eat one taco.
Answer: B
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Import tariffs generally result in
A) higher domestic prices. B) less consumer surplus. C) more producer surplus for domestic producers. D) a deadweight loss. E) all of the above
Which of the following correctly describes marginal revenue product?
a. The change in total revenue divided by the change in output b. The change in total cost divided by the change in total revenue c. The change in total cost divided by the change in output d. The change in total revenue when an additional unit of a resource is hired
To evaluate the potential impact of introducing the hybrid Prius auto into the U.S. market, Toyota Motor Corporation would use:
A. normative economic analysis. B. positive economic analysis. C. forensic analysis. D. negative economic analysis.
A firm is a price taker in the labor market if
A. there is a scarcity of labor in the market. B. the hiring of more workers will leave the existing wage rate unchanged. C. the skills of available workers do not match the requirements for the job. D. the hiring of more workers will drive the existing wage rate up.