Grace maximizes her utility by consuming both gourmet cookies and ice cream. If the price of a dozen cookies is three times that of a pint of ice cream, we would expect that:
a. the total utility of a dozen cookies is three times that of a pint of ice cream
b. the total utility of a dozen cookies is one-third that of a pint of ice cream.
c. the marginal utility of the last dozen cookies is three times that of the last pint of ice cream.
d. the marginal utility of the last dozen cookies is one-third times that of the last pint of ice cream.
c
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Empirical studies have shown that in most situations people are:
A) risk-averse. B) risk-neutral. C) risk-loving. D) either risk-neutral or risk-loving but not risk-averse.
A debtor nation means a nation
A) whose imports exceeds its exports. B) whose current account is less than its capital account. C) who—through its history—has invested less in the rest of the world than other countries have invested in it. D) whose current lending to the rest of the world exceeds its borrowing from the rest of the world.
When prices for goods and services are quoted in money terms, this is an example of money being used as a store of value
a. True b. False Indicate whether the statement is true or false
The two "goods" used when economists analyze labor supply are
a. work and leisure. b. work and consumption. c. saving and consumption. d. leisure and consumption.