Suppose that for George the marginal benefit per dollar spent on tuna is less than the marginal benefit per dollar spent on ham. The consumer can always increase his utility by buying:
A. more tuna and less ham.
B. less tuna and more ham.
C. more of both goods.
D. The consumer is already maximizing utility.
Answer: B
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Figure 20-4
In Figure 20-4, which panel depicts a union suffering unemployment during a recession rather than allowing the wage to fall?
A. 1 B. 2 C. 3 D. 4
Ceteris paribus, if the French decide they want to drink more Chinese-grown tea, this causes the ________ Chinese currency to ________.
A. supply of; decrease B. demand for; decrease C. demand for; increase D. supply of; increase
Which statement is true?
A. You can have a shortage without scarcity. B. No scarcity will exist at a market equilibrium price. C. The terms "shortage" and "scarcity" are identical concepts in economics. D. You can have scarcity without a shortage.
A catfish farmer will shut down production when
A. He is losing money. B. The best he can do is break even. C. Price falls below AVC. D. Total revenue falls below total costs.