Refer to Figure 4-1. Kendra's marginal benefit from consuming the first ice cream cone is
A) $9.00 B) $7.50 C) $3.50 D) $0.50
C
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Productivity growth is closely linked to the average level of:
a. age. b. education. c. technology. d. wages.
A price ceiling might be an appropriate government response to a
a. period of falling farm prices due to unusually good harvests b. substantial increase in farm productivity due to marked applications of new technology in agriculture c. national security crisis leading to major shortages of essential goods d. period of extraordinary large surpluses of farm goods e. good in which the demand is considerably less than the supply
Turning points in business cycles occur when
A. a new business cycle is initiated at the trough. B. the business cycle begins to follow a new pattern that differs from previous business cycles. C. the economy hits the peak or trough in the business cycle. D. a new business cycle is initiated at the peak.
Ms. Birnbaum is buying bottles of beer and bags of pretzels. The marginal utility of the last bottle of beer is 60 and the marginal utility of the last bag of pretzels is 30. The price of beer is $0.30 per bottle and the price of pretzels is $0.20 per bag. Ms. Birnbaum
A. is not spending all her income. B. should buy more pretzels and less beer. C. is buying beer and pretzels in the utility-maximizing amounts. D. should buy more beer and fewer pretzels.