Refer to the information provided in Table 6.4 below to answer the question(s) that follow.
Table 6.4Number ofDonuts per DayTotal UtilityMarginal Utility180?2150?3200?4230?5?10Number ofBurritos per DayTotal UtilityMarginal Utility160?2108?3144?4168?5?12Refer to Table 6.4. Diminishing marginal utility sets in after the ________ donut per day.
A. first
B. second
C. third
D. fourth
Answer: A
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Refer to Table 20-7. Suppose that the data in the table above reflect price levels in the economy. What is the inflation rate between 2015 and 2016?
A) 2.9% B) 3.5% C) 4.6% D) 5% E) 7.5%
Answer the following statements true (T) or false (F)
1. Firms in monopolistic competition sell a similar but differentiated product. 2. All firms in monopolistic competition must sell at the same price. 3. In monopolistic competition, overall demand and supply may set a market price, but firms can deviate from that price within a small range without substantially affecting their sales. 4. The best example of monopolistic competition in the United States is the steel industry. 5. In monopolistic competition, there is no need for advertising.
In deciding between using a public bureau or a private firm to collect garbage, elected officials may prefer a public bureau because
a. public bureaus have been shown to be more efficient than private firms in garbage collection b. they can convey political favors by giving people jobs in the public bureau c. public bureaus will be more responsive to consumers d. citizens would have to pay if private firms collected garbage e. taxes will be lower if the public bureau is in charge of garbage collection
Bobby makes a New Year's resolution to lose weight. On January 3rd, he decides to go to Ben amp; Jerry's for ice cream instead of going to the gym. Using the concept of revealed preference, economists would most likely conclude that Bobby:
A. has changed his preferences. B. is not a rational individual. C. has no choice over the actions he takes. D. actually gains more utility from ice cream than working out.