Most people would prefer to drive a luxury car that has all the options, but more people buy less expensive cars even though they could afford the luxury car because
A) luxury cars cost a lot more than non-luxury cars.
B) the marginal utility per dollar spent on the less expensive car is higher than that spent on luxury cars.
C) car buyers are irrational.
D) the total utility of less expensive cars is greater than that of luxury cars.
B
You might also like to view...
Which of the following is a microeconomic question?
A) Should Congress and the president take action to reduce the unemployment rate? B) Why do some countries have higher economic growth rates than other countries? C) Should companies pay for employees' health insurance? D) Should the Fed attempt to influence the interest rate to control potential inflation?
One reason that firms hire labor at the point where w = MPN is
A) if w < MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers. B) if w > MPN, the cost (w) of hiring additional workers is less than the benefits (MPN) of hiring them, so they should hire more workers. C) if w < MPN, the cost (w) of hiring additional workers equals the benefits (MPN) of hiring them, so they have the right number of workers. D) if w > MPN, the cost (w) of hiring additional workers exceeds the benefits (MPN) of hiring them, so they should hire fewer workers.
Which of the following is a question that an economist would use to break down a problem?
A. Does the decision maker have a track record of being rational? B. Will the average income per person for the society increase? C. Is there a scarce resource that will be allocated? D. How might one person feel about the solution to the problem?
Domestic income has a ______ relationship with net export spending.
A. negative B. positive C. secondary D. constant