If Mr. McLean thinks the last dollar spent on bowling yields more satisfaction than the last dollar spent on hamburgers, and McLean is a utility-maximizing consumer, he should:
a. bowl less, so the marginal satisfaction from expenditures in this area will increase.
b. spend more on hamburgers, so total satisfaction from that activity will increase.
c. eliminate spending on hamburgers.
d. bowl more and spend less on hamburgers.
d
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Refer to Table 18.1. Panama has a comparative advantage in
A) gloves. B) hats. C) both hats and gloves. D) neither hats nor gloves.
Figure 4-17
Refer to . Which of the following price controls would cause a shortage of 10 units of the good?
a.
a price ceiling of $5.50
b.
a price floor of $5.50
c.
a price ceiling of $6.50
d.
a price floor of $6.50
The owner of a call option can buy a futures contract at the premium price.
a. true b. false
The marginal utility derived from viewing the next movie download is the
A) average utility per minute of viewing. B) additional utility from viewing the movie. C) average utility per hour of viewing. D) additional utility from viewing the first minute of the movie.