Suppose Joe is maximizing total utility within his budget constraint
If the price of the last pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent, the extra satisfaction received from the last shirt must be
A) 2,000 units of utility. B) 500 units of utility.
C) 100 units of utility. D) 80 units of utility.
D
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An increase in the demand for corn is more than offset by an increase in its supply. As a result, the equilibrium price will ________ and the equilibrium quantity will ________.
A. decrease, increase B. increase, increase C. decrease, decrease D. increase, decrease
In constructing the Human Development Index, high income levels are given less than proportionate weight because
a. Items bought by rich people are luxuries, not necessities. b. United Nations bureaucrats are prejudiced against the rich. c. Dollars received by rich people may have a lower marginal utility than dollars received by poor people. d. Items bought by rich people create more pollution than those bought by the poor. e. All of the above are valid reasons.
Which of the following would be most able to act like a monopsonist?
A) a hospital in a small isolated town B) a hospital in a very big city C) a law firm in Washington, D.C. D) a computer software firm in Silicon Valley
A market economy allocates resources primarily in accordance with orders from government bureaucrats
a. True b. False Indicate whether the statement is true or false