Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two items. Suppose the price of a cookie rises. According to marginal utility theory, Teddy buys
A) more cookies.
B) fewer cookies.
C) more hot chocolate.
D) an equal amount of cookies and hot chocolate.
B
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A farmer who has fixed amounts of land and capital finds that total product is 24 for the first worker hired; 32 when two workers are hired; 37 when three are hired; and 40 when four are hired. The farmer's product sells for $3 per unit and the wage rate is $13 per worker. The marginal revenue product of the second worker is
A. $24. B. $8. C. $9. D. $15.
Jerry is studying three nights per week and his grade point average is 3.1. He wants a higher GPA and decides to study an extra night each week. His GPA now rises to 3.5
Had Jerry not decided to study an extra night, he would have spent this night with his friends. What is Jerry's marginal benefit from studying for one additional night a week? What is his marginal cost of increasing the study time by one night per week? Why does Jerry decide to study an extra night?
Which of the following is an example of basic research?
a. Conducting animal tests to determine if a product contains irritants b. Soft drink bottlers testing consumer reactions to their advertisements c. A statistician calculating the odds of winning a promotional sweepstakes that a company is running d. A catalog sales company timing its operators to see how many calls each is handling per day e. A chemist building a mathematical model of the atmosphere of Jupiter
Stagflation is a combination of ________ and ________.
A. inflation; recession B. deflation; expansion C. excessive aggregate spending; excessive aggregate supply D. monetary policy; fiscal policy