Suppose this table shows your demand schedule for tee shirts. (a) What is your total utility from three tee shirts? (b) What is your marginal utility from the third tee shirt? (c) If price were $2, how much would your consumer surplus be?
(a) $15
(b) $4
(c) Total Utility ($20) - (Price ($2) × Quantity Demanded (5))
$20 - $10
$10
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In the dynamic aggregated demand and aggregate supply model, if AD shifts faster than AS
A) stagflation occurs. B) deflation occurs. C) disinflation occurs. D) inflation occurs.
What links the decisions of consumers and firms in a market?
A) the government B) prices C) coordination officials D) microeconomics
Nona has just gone on a bike ride for an hour and says it gave her a utility of 7. If she chooses to continue to ride her bike for another hour:
A. we can assume she will get at least a marginal utility of more than 7. B. we can assume she will get a marginal utility of 7. C. we can assume she will get a marginal utility of less than 7. D. we can assume Nona's total utility will fall because of diminishing marginal utility.
Which of the following is the primary source of cross-country differences in the real earnings of workers?
a. differences in natural resource endowments b. differences in output per worker c. differences in the average number of hours worked d. differences in the share of workers that are members of a labor union e. access to modern technology