Suzy spends all of her income on potato chips and textbooks. To maximize her total utility, she should
a. allocate her income so that the marginal utilities of potato chips and textbooks are equal
b. allocate her income so that the marginal utilities per dollar spent on potato chips and textbooks are equal
c. change her eating habits
d. choose a consumption point that is inside her budget constraint
e. allocate her income so that the total utilities of potato chips and textbooks are equal
B
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Production possibilities frontiers usually curve out and away from the origin. The implication of this curvature is that
A) as resources are used to produce one good, fewer resources are available to produce another good. B) technological change is present. C) the opportunity cost of producing a good stays the same regardless of how much of that good is produced. D) some resources are better at producing one good while other resources are better at producing alternative goods. E) the opportunity cost of producing a good goes down as more of that good is produced.
Andrew Carnegie dominated the steel industry on the basis of the Bessemer converter. This technology permitted unskilled men to produce large quantities of steel at relatively low costs. This technology was
(a) invented by Carnegie. (b) stolen from the British inventor Bessemer. (c) acquired legally from the British inventor Bessemer. (d) imported from Germany.
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If the economy is actually at Point C but policy makers think that it is still at Point B, this is an example of
A. response lag. B. economic policies ineffectiveness. C. implementation lag. D. recognition lag.
Refer to the given data. The firm will maximize profits (or minimize losses) by employing:
Use the labor demand data on the left and the labor supply data on the right in answering the following question:
A. 5 workers.
B. 4 workers.
C. 3 workers.
D. 2 workers.