To maximize utility, a consumer should allocate money income so that the:
A. elasticity of demand on all products purchased is the same.
B. marginal utility obtained from the last dollar spent on each product is the same.
C. total utility derived from each product consumed is the same.
D. marginal utility of the last unit of each product consumed is the same.
Answer: B
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Economists usually believe that:
A. competition encourages innovation. B. innovation encourages competition. C. innovation leads to market power and should be regulated. D. market power leads to innovation.
Mr. Jones pays his employees by the hour. He believes they purposely work slowly to maximize their personal satisfaction. What can he do to provide them with a stronger incentive to work efficiently?
What causes an increase in demand for land?
a. a decrease in both the supply and the quantity b. a combination of increased supply and low price c. derived demand for a product it is used to produce d. increased rents bringing more land onto the market
According to researchers, there is a direct link between unemployment and:
A) characteristics of structural unemployment. B) major social problems such as high levels of education and, health services. C) inflation. D) major social problems like higher crime rates, higher rate of depression, heart disease and other illnesses.