Which of the following best describes rule utilitarianism?
a. a person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations
b. a person who considers a situation and decides upon the easiest course of action
c. a person who considers an action and determines whether it would end favorably for them
d. a person examines a situation, considers all possible actions they could take and decides which one would end most favorably for all involved
Ans: a. a person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations
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Consider the perfectly competitive firm in the above figure. At the profit maximizing level of output, the firm is
A) incurring an economic loss equal to $119.00. B) incurring an economic loss equal to $123.50. C) incurring an economic loss equal to $187.00. D) making zero economic profit.
A minimum wage law (that sets the minimum wage above the equilibrium wage) can be expected to
A) clear the market for unskilled workers. B) increase the number of unskilled workers employed. C) increase the number of firms in those industries where the law is effective. D) reduce the number of unskilled workers employed and/or reduce the number of hours worked by unskilled workers. E) all of the above
A diagonal straight line on a Lorenz curve represents
A) a perfectly unequal distribution of income (one person has everything). B) a perfectly equal distribution of income. C) a high level of inequality in the distribution of income. D) an oblique distribution of income.
Assume that A and B are both priced at $1 per unit and that Mary has $10 to spend on A and B. She buys 6 units of A and 4 units of B. The marginal utility of the final unit of A bought is 12 and that of B is 8. This indicates that:
A. Mary's consumption is in equilibrium B. Given another dollar, Mary should buy an additional unit of B C. In order to maximize utility, Mary should buy more of B and less of A D. In order to maximize utility, Mary should buy more of A and less of B