In deciding what to buy, the consumer will choose the good with the:
A. Highest marginal utility
B. Lowest price
C. Highest marginal utility-to-price ratio
D. Lowest marginal utility-to-price ratio
C. Highest marginal utility-to-price ratio
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One of the reasons that a firm can be ________ efficient than a market is that the firm ________
A) more; does not have any economies of scale B) more; lowers transactions costs C) less; has economies of scope D) less; produces lower profits
If good X is an inferior good, a decrease in consumer income, other things being equal, will shift the:
a. demand curve for good X to the right. b. demand curve for good X to the left. c. supply curve for good X to the right. d. supply curve for good X to the left.
Economists object to monopoly because
a. monopoly profits go to the rich. b. monopolies overproduce to maximize profits. c. monopolies are usually polluters. d. monopolists keep output below efficient levels.
When a country imports more than it exports, the country has ________.
A. a trade deficit B. a decrease in aggregate supply C. an increase in aggregate demand D. a trade surplus