The table above shows the total utility from the two goods Freddy likes to consume. Suppose that Freddy has already eaten 5 bags of Fritos. If he consumes one more bag, his marginal utility will
A) equal 40.
B) equal 35.
C) equal 15.
D) depend on the price of the extra bag.
C
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The behavior of people in government
A) can be explained or understood by applying the same principles we use to predict the behavior of people in business. B) is different from the behavior of people in business because the former aims at the general welfare rather than private welfare. C) is essentially different from market behavior. D) is not compatible with the existence of a market system. E) serves to balance private-sector behavior.
Which of the following would not be considered a role of the government?
a. promoting competition b. providing public goods c. providing externalities d. regulating natural monopolies e. safeguarding private property and enforcing contracts
For a given, permanent reduction in demand for a product: a. the decrease in price will be greater the more elastic is supply
b. the decrease in price will be greater in the long run than in the short run. c. the decrease in price will be greater the more inelastic is supply. d. none of the above
Recall the Application about weather-linked crop insurance to answer the following question(s).According to the Application, farmers in poor countries hesitate to increase their investments in fertilizer and seeds due to:
A. unpredictable weather patterns. B. very predictable weather patterns. C. lack of property rights. D. government regulation.