For a person in a desert community, as compared to being in a non-desert community, water would have
a. lower marginal utility and lower total utility
b. lower marginal utility and higher total utility
c. higher marginal utility and lower total utility
d. higher marginal utility and higher total utility
e. zero marginal utility, but higher total utility
D
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If higher prices cause buyers to shop at discount stores, the CPI has
A) a new goods bias. B) a quality change bias. C) a commodity substitution bias. D) an outlet substitution bias. E) a discounted bias.
Which of the following are reasons economists consider valid for trade protection?
I. Protection penalizes countries that have weak environmental standards. II. Protection limits dumping of low-wage jobs into the domestic economy. III. Protection prevents low-wage jobs in foreign countries from lowering wages in the United States. A) I and II B) II and III C) I, II, and III D) none of the above
The price of a gallon of gasoline increased from $2.00 to $2.25 while the price of a ride on the city bus increased from 50 cents to 75 cents. The relative price of riding the city bus
A) increased from 0.25 to 0.6. B) decreased from 4.0 to 3.0. C) stayed constant at 0.25. D) stayed constant at 4.0.
The higher the price of a foreign currency, the more expensive that foreign country's goods and services are to individuals in the domestic economy
a. True b. False