In deciding what to buy to maximize utility, the consumer should choose the good with the
A. highest marginal utility per dollar spent.
B. lowest price.
C. lowest marginal utility per dollar spent.
D. highest marginal utility.
Answer: A
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Use the following diagram to answer the next question.
Assume the economy is initially at the full employment level of real GDP. A decrease in net exports will ________.
A. reduce the full employment level of real GDP B. reduce output in the economy C. raise the price level D. reduce the unemployment rate
If you heard someone say that coal miners should be paid more wages to enable them to adequately support their families, that would be a statement of
a. positive economics. b. normative economics. c. radical economics. d. None of these.
The Chamberlin oligopoly provides a foundation for ________ and differs from the Cournot oligopoly as it assumes firms ________ to each other's actions.
A) tacit collusion; do not respond B) cartels; respond C) tacit collusion; respond D) cartels; do not respond
As long as scarcity exists,
a. product prices play no role in utility maximization b. income plays no role in utility maximization c. income and product prices must both be considered in utility maximization d. consumers maximize utility by consuming all products until their marginal utility is zero e. product prices will be zero