The marginal utility of the first smoothie that Jimmy drinks in the morning is worth $3.00. The marginal utility of the 4th smoothie he drinks is positive while the marginal utility of the 5th smoothie he drinks in the morning is worth $0. This implies that at a price of $0, Jimmy would drink
A. zero smoothies per morning.
B. at most 5 smoothies per morning.
C. an infinite number of smoothies each morning.
D. more than 5 smoothies per morning, but the actual number is indeterminate from this information.
Answer: B
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Total revenue is:
A. the amount that an individual gets paid over a specified period of time, typically annually. B. the quantity sold multiplied by the price paid for each unit. C. the amount that a firm spends on all inputs that go into producing a good or service. D. the quantity produced multiplied by the cost of producing each unit.
Money is created when
A. a bank gives you a $1,000 loan. B. you pay back a $1,000 loan to a bank. C. you write a check for $1,000. D. you deposit $1,000 cash to be deposited in your checking account.
When an economy is operating at "full employment," as economists usually define the term,
A. The unemployment rate is 4-6 percent. B. Everyone who wants a job has a job. C. The unemployment rate is 0 percent. D. Inflation is a significant problem.
Test of the HO theory have clearly been successful
Indicate whether the statement is true or false