A consumer maximizes total utility from a given amount of income when the
A. Marginal utility per dollar obtained from the last unit of each good is the same.
B. Total utility obtained from each product is the same.
C. Marginal utility of the last unit of each good is the same.
D. Amount spent for each product is the same.
Answer: A
You might also like to view...
In the short run, certain costs, such as rent on land and equipment, must be paid whether or not any output is produced. These are:
a. the firm's variable costs. b. the firm's break-even costs. c. the firm's sunk costs. d. the firm's marginal costs. e. the firm's fixed costs.
Which of the following is not a result of the theory of land rent?
A. Capital invested on any plot of land must yield the same return as capital invested on any other plot of land. B. The difference between the costs of producing on any two pieces of land must equal the difference between their rents. C. Marginal land earns no rent. D. Productive land earns more rent than marginal land, which earns more rent than nonproductive land.
If the price of gasoline rises by 20 percent and consumption of gasoline falls 5 percent,
A. demand is elastic. B. demand is unit elastic. C. demand is inelastic. D. elasticity of demand cannot be calculated.
Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?
a. "Central Bank Raises Interest Rates" b. "Auto Dealership to Cut Prices" c. "Fanny's Freeze Dried Prunes to Lay Off 50 Workers" d. "United Workers Union to Strike April 15" e. "Brazilian Coffee Bean Crop Falls by 10 Percent"