If a consumer always buys goods rationally, then
A) the total utilities of the different goods consumed will be equal.
B) the average utilities of the different goods consumed will be equal.
C) the marginal utility per dollar spent on all goods will be equal.
D) the marginal utility of the different goods consumed will be equal.
Answer: C
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The government debt is the difference between the current level of total expenditures and revenues
Indicate whether the statement is true or false
Which of the following statements is true?
A. Firms are unlikely to relocate their high-pollution production to countries with lax environmental laws because they fear that such moves will result in adverse effects on their reputations. B. Evidence shows that measures to keep the environment clean represent a large percentage of the total costs of production for a firm in a country with strict environmental laws. C. There are large incentives for firms to relocate from countries with strict environmental laws to countries with lax environmental regulation. D. Imposition of a tax on the production of a particular high-pollution product typically has a greater impact on consumer surplus than on producer surplus.
Jill Johnson owns a pizzeria. She currently produces 10,000 pizzas per month at a total cost of $500. If she produced one more pizza her total cost rises to $500.11. What does this tell us about Jill's marginal cost of producing pizzas?
A) The marginal cost of producing pizzas is constant. B) The marginal cost of producing pizzas is falling. C) The marginal cost of producing pizzas cannot be determined without more information. D) The marginal cost of producing pizzas is rising.
When making a decision, it is easier to identify and evaluate which of the following?
A. Neither of these is often easy to identify and evaluate. B. Benefits associated with the decision. C. Costs associated with the decision. D. Costs and benefits are equally easy to identify and evaluate.