A consumer should increase this/her consumption of good X relative to good Y if:
A. the marginal benefit per dollar spent on good X is greater than the marginal benefit per dollar spent on good Y.
B. the marginal benefit per dollar spent on good X is smaller than the marginal benefit per dollar spent on good Y.
C. the marginal benefit per dollar spent on good X is the same as the marginal benefit per dollar spent on good Y.
D. None of these
Answer: A
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According to the Application, one factor which was responsible for roughly one-third of hybrid vehicles purchased in 2007 was an increase in the price of gasoline
The increase in sales due to higher gasoline prices describes the economic concept of A) marginal thinking. B) rational self interest. C) using assumptions to simplify. D) ceteris paribus.
Generally, in economics we study how people
a. react to changes in government policy. b. make choices when resources are scarce. c. react to rising prices. d. get increases in income.
Underemployment refers to: a. seasonal unemployment
b. people working full time though they would rather work part time. c. the unemployment that occurs when the actual level of employment is less than the full employment level. d. people working in jobs that do not fully use their skills. e. people working part time.
The change in consumption divided by a change in disposable income is defined as:
a. the marginal propensity to consume. b. autonomous consumption. c. the consumption function. d. Keynes' absolute disposable income hypothesis. e. transitory consumption.