Suppose you have spent your entire budget and for all the goods you purchase the marginal utilities per dollar spent are identical. Which of the following is true?
a. You are being irrational.
b. You can increase your utility by reallocating your income.
c. You will reduce your utility if you allocate income in any other way.
d. You are minimizing your marginal utility.
e. You can avoid diminishing marginal utility.
c
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If factors of production cannot flow between countries
A) there is no reason to expect that wages should be equal worldwide. B) multinational corporations would not exist. C) trade in goods could still occur. D) All of the above.
In the long run, which of the following is considered a variable cost?
A) Expenditures for wages B) Expenditures for research and development C) Expenditures for raw materials D) Expenditures for capital machinery and equipment E) all of the above
As of July 2009, the legal hourly minimum wage was ________.
A. $5.15 B. $6.20 C. $7.25 D. $12.30
We know that going to college pays off. For example, we know that college graduates earn