Water is essential to life, while diamonds are not. However, water is cheap and diamonds are expensive. This paradox can be resolved by focusing on:
A) total utility rather than average utility.
B) average utility rather than marginal utility.
C) marginal utility rather than total utility.
D) total utility rather than marginal utility.
E) average utility rather than total utility.
Answer: C) marginal utility rather than total utility.
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Which of the following is a false statement about education in the HPAE?
A) An emphasis on state funding of advanced degree programs, such as engineering and computer science, increased manufacturing production significantly. B) Literacy rates rose dramatically in the HPAE and laid a foundation for a skilled labor force. C) As the average educational level rose, workers could take on more technological, sophisticated production, pushing new investment into product lines. D) Spending was focused on the primary and secondary level, where it has the greatest social impact.
If a tax on each Snicker's bar is $0.10, that tax is a
a. property tax b. customs duty c. progressive tax d. unit tax e. sales tax
Recall the Application about the incentives to install rooftop solar panels to answer the following question(s).According to the Application, the value of the federal tax credits equaled 30 percent of solar panel installation costs. If you purchase a rooftop solar panel for $20,000, then on the year you installed your solar panels, you should expect a decrease in your liabilities to the federal taxes by:
A. $6,000. B. $12,000. C. $15,000. D. $1,500.
If there is a shortage
A) fewer producers want to sell the product because it is too scarce. B) consumers will drive up the price further. C) firms will drive up the price to enhance profits. D) the price will decline to the equilibrium level.