The marginal utility per dollar that Harold Stratton receives from oranges is greater than the marginal utility per dollar Harold receives from pears. To maximize his utility, what should Harold do?
A) He should buy fewer pears and more oranges.
B) He should buy fewer oranges and more pears.
C) He should reduce his consumption of both oranges and pears so that he can buy a greater variety of goods.
D) He should acquire more income so that he can afford to buy more oranges and pears.
A
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Systematic efforts to extend vaccination throughout the world have produced a situation today in which the smallpox virus is
A) in short supply (a shortage exists). B) rare. C) scarce. D) all of the above.
For a perfectly competitive firm, at the profit-maximizing output average revenue equals marginal cost
Indicate whether the statement is true or false
Which of the following statements best describes the study of economics?
A. Economics studies how the Federal Reserve handles fluctuation in business cycles. B. Economics studies how individuals and groups manage scarce resources. C. Economics studies how people maximize returns in the stock market. D. Economics studies how governments determine appropriate tax rates.
Another name for internal cost is
A) private cost. B) social cost. C) psychological cost. D) marginal cost.