You would like to purchase two products. Product A gives you 8 utils, and Product B gives you 5 utils. Both products cost the same amount, and you can purchase only one of them. If you make the rational choice, what will be the net gain of utils from your purchase?
a. 3
b. 5
c. 8
d. 13
a. 3
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The table below shows the utility schedule for a consumer of candy bars. Candy Bars ConsumedTotal Utility001529312414515615713Marginal utility becomes negative with the consumption of the
A. sixth candy bar. B. seventh candy bar. C. fifth candy bar. D. second candy bar.
The marginal product of labor is the change in
A) total cost from employing one more worker. B) total revenue from employing one more worker. C) average product from employing one more worker. D) total output from employing one more worker. E) total output divided by the change in cost from employing one more worker.
Higher government deficits ________ the supply of bonds and shift the supply curve to the ________, everything else held constant
A) increase; left B) increase; right C) decrease; left D) decrease; right
If, for a $1000 premium, you buy a $100,000 call option on bond futures with a strike price of 110, and at the expiration date the price is 114, your ________ is ________
A) profit; $4000 B) loss; $4000 C) profit; $3000 D) loss; $3000