John has just eaten another potato chip and his total utility decreased. This means that John's marginal utility for this additional potato chip is
A) positive.
B) negative.
C) zero.
D) not determinable without more information.
Answer: B) negative.
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Wealth is the same as:
A. assets. B. capital gains. C. net worth. D. savings.
If a 5% cut in the price of a product causes the quantity demanded to rise by 10%, the demand is
A. unit elastic. B. inelastic. C. perfectly elastic. D. elastic.
Entrepreneurial profits are very low because entrepreneurs are generally
a. overly pessimistic and receive psychological rewards for their work. b. overly pessimistic and incur psychological costs from their work. c. overly optimistic and receive psychological rewards for their work. d. overly optimistic and incur psychological costs from their work.
Explain the prisoner’s dilemma case in game theory and its relevance to the maximin criterion.
What will be an ideal response?