A consumer possesses five pounds of bananas and values their total utility at $2.14 . If one additional pound is acquired and marginal utility is 11 cents, total utility will
a. rise to $2.25.
b. fall to $2.03.
c. stay the same.
d. fall to $2.11.
a
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If household saving increases by $3 million, business saving decreases by $1 million, and the government budget deficit decreases by $2 million, then private saving ________ and public saving ________.
A. increases; decreases B. does not change; increases C. does not change; decreases D. increases; increases
If the percentage change in quantity supplied is 0%, and the percentage change in price is 10%, then the supply for the good is
A. unit elastic. B. perfectly inelastic. C. inelastic. D. elastic.
Casino gambling is a different form of entertainment than a movie in that
A. you can get your money back at a casino if you do not have fun. B. you sometimes leave a casino with less money than you came in with. C. you sometimes leave a casino with more money than you came in with. D. they are not different at all.
If the government proposed a one-time tax of 25% on accumulated wealth, this would likely
A) reduce the incentive for individuals to accumulate wealth. B) increase the incentive for individuals to accumulate wealth. C) have no impact on individual accumulation of wealth since it is a one-time tax. D) All of the above are equally likely to happen.