Related to the Economics in Practice on page 318: Producers of Honest Tea stop adding sugar to their tea when the marginal utility to consumers of doing so is
A. negative.
B. positive.
C. zero.
D. Indeterminate from the given information.
Answer: B
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A demand curves describes
a. the amount of units a consumer will purchase at a given price b. the amount of units a producer will sell at a given price c. both the amount of units that a consumer will buy and a producer will produce at a given price d. the amount of units supplied given a change in prices
Using Taylor rule, the federal funds rate is increased or decreased according to what is happening to both real GDP and inflation
a. True b. False Indicate whether the statement is true or false
The deregulation of oil pricing will
a. increase our dependence on foreign oil. b. make the United States energy-independent by the year 2000. c. decrease domestic production. d. decrease the extent of the nation's dependence on foreign oil.
Which of the following is the behavior of a rational consumer?
a. to seek to maximize his or her own total utility b. to purchase a good until marginal utility falls to zero c. to match his or her personal utility to that of all other consumers d. to maximize the variety of goods he or she purchases