Utility is the set of numerical values that
A) yields an absolute level of pleasure from a bundle of goods.
B) reflects the relative ranking of various bundles of goods.
C) describes how much more a consumer prefers one bundle to another.
D) yields a cardinal ranking of bundles.
B
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The idea that investment in comprehensive education in developing countries leads to permanent increases in the rate of technological progress is an example of
A) a trade-off between human capital and technology. B) increasing economic inequality. C) capital deepening. D) new growth theory.
Marginal utility theory assumes that when Sally consume less of a good that she was previously consuming more than one unit of, her ________
A) total utility increases B) marginal utility increases C) income increases D) total utility is maximized
The world trading system combines negotiated agreements that promote trade liberalization called ________ with binding agreements called ________ that block tariff increases
A) fiscal policies; monetary policies B) truces; aggressions C) free trade; enforcement contracts D) levers; ratchets E) wheels; walls
Natalie can produce 6 shirts in a day, or cook three meals. Her opportunity cost of producing a shirt is 2 meals
Indicate whether the statement is true or false