Consumers should allocate their income so that the marginal utility associated with the:
a. first dollar spent is equal for all goods.
b. last dollar spent is equal for all goods.
c. last dollar spent is lower for high-priced items than for low-priced items.
d. first dollar spent is greater for high-priced items than for low-priced items.
e. first dollar spent is less for high-priced items than for low-priced items.
b
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The marginal cost to society of reducing pollution increases with the increased use of pollution abatement because
A) of the diminishing marginal utility of abatement. B) of the reduced demand for abatement. C) of the diminishing returns from abatement. D) of the high cost of abatement.
Economists are general supporters of farm price support programs as being economically efficiency enhancing.
Answer the following statement true (T) or false (F)
Vote trading in legislatures can lead to efficient outcomes that might otherwise not have been reached.
Answer the following statement true (T) or false (F)
Frank owns an apple farm and plans to spend 4 hours today picking apples. The number of apples he can pick per hour depends on the total number of hours he spends working in either the east orchard or the west orchard in the manner shown in the accompanying table below.Hours in East OrchardNumber of Apples Per HourHours in West OrchardNumber of Apples Per Hour140110232210325310420410 What is the opportunity cost to Frank of spending an additional hour picking apples in the East orchard?
A. 20 apples B. 10 apples C. 30 apples D. 40 apples