Eric is maximizing his total utility through his choices of two goods: clothes and food. His marginal utility of clothes is 60 and his marginal utility of food is 12. The price of clothes is $20. What must be the price of food?
A. 12.
B. 6.
C. 4.
D. 1.
Answer: C
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A recent study has revealed that the unemployment rate in Eduland has been increasing over the last few years. What will be the impact of an increase in government spending in Eduland?
What will be an ideal response?
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The French respect individual freedoms even as they accept collective action to reach important national goals of social solidarity and equality. What has been the major cost of a government-run system in France?
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