The marginal utility per dollar you are spending on iTunes music downloads is less than the marginal utility per dollar you are spending on Red Bull. According to the rule of equal marginal utility per dollar? spent, what can you do to increase your total utility from consumption of music downloads and Red? Bull?
Answer: You can increase your consumption of Red Bull.
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Refer to the scenario above. If Frank discounts delayed utilities with a weight of 9/10, then which of the following statements is true?
A) He will eat both hotdogs and ice cream. B) He will eat hotdogs but avoid ice cream. C) He will eat ice cream but avoid hotdogs. D) He will avoid consuming both hotdogs and ice cream.
Indexing the tax system to take into account the effects of inflation would by itself
a. mean that only real interest earnings are taxed. b. mean an end to taxing capital gains. c. mean an increase in average tax rates. d. All of the above are correct.
Refer to the budget line shown in the diagram above. The absolute value of the slope of the budget line is:
A) MUC/MUD. B) one-half. C) PD/PC. D) PC/PD.
Economics does not study correct or incorrect behaviors but rather it assumes that economic agents behave ________, meaning they make the best decisions given their knowledge of the costs and benefits
A) equitably B) rationally C) emotionally D) selfishly