What is the marginal utility per dollar and how is it calculated?
What will be an ideal response?
The marginal utility per dollar equals the marginal utility of the good or service divided by its price. The marginal utility per dollar tells the additional utility gained from spending one more dollar on a good or service.
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Suppose a subsidy is offered to consumers of education as a means of internalizing the externalities associated with education. If the subsidy accurately reflects the external benefits of education, then the new demand curve for education coincides with which other curve?
The author of the textbook defines economics as the
A) science of efficiency. B) science of scarcity. C) study of markets. D) study of human activity.
Since 1975, the distribution of household income in the United States has:
A. Moved toward greater inequality B. Moved toward greater equality C. Remained about the same D. Fluctuated considerably
If the demand curve shifts but the supply curve does not and price remains the same, supply must be perfectly inelastic
a. True b. False