Lucy buys only magazines and CDs. Both are normal goods. Lucy's income decreases, but the prices of magazines and CDs do not change. Marginal utility theory predicts that Lucy will ________
A) buy fewer magazines and fewer CDs
B) substitute magazines for CDs
C) increase her marginal utility from both magazines and CDs by buying more magazines and CDs
D) buy more magazines and more CDs
A
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A musician was guaranteed by the government that no one else could replicate or sell his music CDs. This is an example of a:
A) brand. B) patent. C) copyright. D) trademark.
Why is the net gain from international trade positive?
What will be an ideal response?
The assumed goal of the firms that operate in each of the four market structures discussed in the text is to maximize:
A) sales. B) revenue. C) profits. D) price.
According to the text, the highest 20 percent of U.S. income households earn about what percentage of total income today?
A) 10 percent B) 20 percent C) 50 percent D) 99 percent