According to the general utility formula, the marginal utility of a good divided by the price of that good is ________.
A. less that negative one
B. equal to one
C. greater than one
D. equal to zero
B. equal to one
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If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True b. False Indicate whether the statement is true or false
An increase in the price of cameras results in a decrease in the demand for film. The two products are
a. complements. b. unrelated. c. defective d. substitutes
Which of the following is exempt from antitrust laws?
A. professional football B. airlines C. petroleum companies D. hospitals
Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1000 ITQ and the current market price is $10 per ton. If Joe sold his ITQ to Ronny for $7000, he and Ronny would:
A. Make the sale because they're both better off B. Not make the sale because Joe is better off and Ronny is not C. Not make the sale because Ronny is better of and Joe is not D. Not make the sale because neither is better off