Jason is faced with two options: A BMW costing $40,000 gives him an additional 800 units of utility, and a laser printer costing $1,000 gives him an additional 25 units of utility. Rational choice theory would predict that he would choose:
A. to purchase the laser printer.
B. it is impossible to choose because BMWs and laser printers are fundamentally different goods with different purposes.
C. to purchase the BMW.
D. it is impossible to choose because the goods have different prices.
Answer: A
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If a U.S. company imports 10 Toyotas from Japan at $15,000 each, and the Japanese company buys airline tickets on a U.S. airline with the money, how does this affect the U.S. balance of payments accounts?
A) Decline in merchandise trade; increase in financial account B) Decline in financial account; increase in merchandise trade C) Decline in merchandise trade; increase in services D) Decline in services; increase in merchandise trade
The earliest unions in the United States were
A) industrial unions. B) craft unions. C) public-sector unions. D) military unions.
When a firm experiences steadily declining long-run average total costs as it produces more output, it is known as a(n)
A) oligopoly. B) rent seeker. C) natural monopoly. D) monopolistic competitor.
The following table shows the units of output a worker can produce per month in country A and country B. Country Food Electronics Country A 20 5 Country B 12 4 The opportunity cost of 1 unit of electronics in country A is
A. 4 units of food. B. 3 units of food. C. 2 units of food. D. all of these.