At her current level of consumption, Wiebke's marginal utility from an additional pencil is 15 utils, and her marginal utility from an additional pen is 10 utils. This implies that Wiebke would be willing to give up at most ________ pencils for an additional pen.
A. 0.75
B. 0.66
C. 3
D. 1.5
Answer: B
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Assume that firms A and B have the same minimum efficient scale of operation and, at current production levels, both firms are incurring the same average costs of production. However, firm A's output is 5 times larger than firm B's output
How is this possible?
Economists use the phrase “business cycle” when discussing
a. movements in interest rates. b. changes in economic productivity. c. fluctuations in employment. d. fluctuations in total output around the trend.
Which of the following is not a benefit of decentralization?
A. Possibility to increase motivation and productivity B. Effective use of local knowledge C. Possibility to shirk and enjoy credits from free riding D. Conservation of management time
Other things the same, a decrease in velocity means that
a. the rate at which money changes hands falls, so the price level rises. b. the rate at which money changes hands falls, so the price level falls. c. the rate at which money changes hands rises, so the price level rises. d. the rate at which money changes hands rises, so the price level falls.