Suppose that for Sarah the marginal benefit per dollar spent on pork exceeds the marginal benefit per dollar spent on chicken. Sarah can always increase her utility by buying:
A. more pork and less chicken.
B. less pork and more chicken.
C. more of both goods.
D. Sarah is already maximizing utility.
Answer: A
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Explain how the Supplemental Security Income Program works
What will be an ideal response?
The main reason(s) firms in a competitive market cannot earn positive profits in the long run is(are)
a. assets can quickly move in and out of the industry when demand fluctuates b. an increase in demand leads to entry of firms which absorb the extra demand c. a decrease in demand leads to exit of firms from the market such that there is no surplus d. all of the above
Refer to the game between James and Theodore depicted in Figure 12.1. Which of the following is true?
A. If James chooses Up, Theodore's best response is to choose Right.
B. If James chooses Down, Theodore's best response is to choose Right.
C. If Theodore chooses Left, James's best response is to choose Up.
D. If Theodore chooses Right, James's best response is to choose Up.
What is economics?
a. study the market changes b. study money c. study how to efficiently allocate scarce resources to maximize societal goals. d. study recession and boom e. study supply and demand