Steve is currently maximizing utility by consuming three fried eggs and four strips of bacon. From this you can conclude that the:
A. marginal utility of the third fried egg equals the marginal utility of the fourth strip of bacon.
B. total utility of the three eggs equals the total utility of the four strips of bacon.
C. price of eggs and bacon are the same.
D. opportunity cost of not consuming the third fried egg equals the opportunity cost of not consuming the fourth strip of bacon.
Answer: D
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A) fallen B) stayed essentially unchanged C) increased D) moved in the opposite direction of the college premium
All capitalist economies
A. can operate without government establishing a legal system. B. create an equal distribution of income. C. depend on central planning. D. depend on the price mechanism.
Economics is best defined as the study of:
A. whether we will have enough resources in the future. B. choice in the face of limited resources. C. the financial concerns of businesses and individuals. D. the role of government in limiting the choices people make.
If in the market for used bikes where only sellers can distinguish between good quality and bad quality used bikes, then in that market there exists:
A. perfect information. B. asymmetric information. C. public information. D. duopoly information.