George Carlson wears cuff links with his dress shirts and he loves the new pair his wife bought him. He adds it to his collection, which he now values at $650 . Before the new purchase, he valued the collection at $575 . What can we say about the marginal utility of the new cuff links to him?
a. The marginal utility of the new pair is $650 and it's higher than the marginal utility of any pair he
already had.
b. The marginal utility of the new pair is $650 and it's lower than the marginal utility of any pair he already had.
c. The marginal utility of the new pair is $75 .
d. The marginal utility of the new pair is $575 and it's higher than the marginal utility of any pair he already had.
e. The marginal utility of the new pair is $75 and it's higher than the marginal utility of any pair he already had.
C
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The traditional typewriter market has collapsed over the past few decades because people prefer personal computers. Yet, some new typewriters continue to be produced and sold at historically low prices
How would you explain the decline in typewriter prices? A) Typewriter producers have become less greedy. B) The demand curve for typewriters has shifted to the left. C) The supply curve for typewriters has shifted to the right. D) The supply curve for typewriters has shifted to the left.
According to the law of demand, as the price of a good rises, _____.
a. buyers purchase more of the good because the higher price reflects an improvement in product quality b. buyers purchase less of the good because their real income decreases with an increase in price c. buyers purchase less of the good because they expect prices to fall in the future d. buyers purchase more of the good because they expect the price of a substitute good to rise e. buyers purchase more of the good because they expect prices to be even higher in the future
The net export component of aggregate demand is defined as U.S.
A. imports minus U.S. exports. B. imports plus U.S. exports. C. exports minus U.S. imports. D. exports minus taxes and customs duties.
The golden rule level of capital refers to
A) the level of capital that maximizes output per worker. B) the level of capital that maximizes the standard of living. C) the level of capital that maximizes consumption per worker in the steady state. D) all of the above E) none of the above