Howard has just smoked a cigarette. If he chooses to smoke a second one:
A. he will derive less marginal utility from it than his first.
B. he is not acting rationally.
C. he will experience a drop in total utility.
D. None of these is true.
Answer: A
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The extra cost associated with undertaking an activity is called
A) opportunity cost. B) foregone cost. C) marginal cost. D) net loss.
The marginal fixed cost of a firm:
a. is a positive constant irrespective of output level. b. declines as output is increased because a fixed numerator is divided by an ever-growing denominator. c. generally increases as output is increased. d. is equal to average variable cost and average total cost at their minimum points. e. is always equal to zero and is therefore ignored by economists.
After being introduced in 1999, the euro
a. increased in value through 2008. b. decreased in value through 2008. c. increased in value through 2000 but then decreased in value through 2008. d. decreased in value through 2000 but then increased in value through 2008.
The word "util" has been used by economists in the past as an objective measure of utility. Today economists believe that
A) utility cannot be measured objectively. B) utility can be measured objectively because people can use prices of different goods to measure utility. C) all of the important conclusions of the economic model of consumer behavior depend on utility being measured objectively. D) the util truly is an objective, rather than a subjective, measure of utility.