Bobby is buying slices of pizza and place a value of his utility of the first slice at $5; a second slice at $4, and a third slice at $2. If Bobby eats three slices of pizza for lunch, his total utility is equal to
A. $5 less what he had to pay.
B. $2, since that’s the marginal utility of the last slice.
C. the marginal utility of the third slice.
D. $11.
Answer: D
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Refer to the scenario above. If Lawland's net factor payments from abroad equals zero and net transfer payments from abroad is negative, ________
A) Lawland is likely to experience a net outflow of assets B) Lawland is likely to experience a current account surplus C) Lawland is likely to experience a current account deficit D) Lawland is likely to stop trading with its trading partners A country imported goods and services worth $40 billion and exported goods and services worth $37.8 billion during a particular year.
A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it
Indicate whether the statement is true or false
Which statement is true?
A. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for free trade. B. Frederic Bastiat's "Petition of the Candlemakers to Shut Out the Sun" was a plea for protection. C. Dollars are used for all international transactions. D. None of these statements are true.
Many detrimental externalities occur because
a. persons do not pay the full social cost of using a resource. b. persons do not pay the full private cost of using a resource. c. companies do not pay the market price for natural resources. d. companies pay more than the full social cost of using a resource.