If Marlowe obtains 9 units of utility per dollar spent on apples and 6 units of utility per dollar spent on oranges, then Marlowe
A) is maximizing total utility.
B) should buy more apples and fewer oranges.
C) should buy more oranges and fewer apples.
D) should buy fewer oranges and fewer apples.
Answer: B
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If a worker is temporarily laid off because the economy is in a recession
A) frictional unemployment increases. B) structural unemployment increases. C) the size of the labor force rises. D) cyclical unemployment increases.
A major problem with using a tradable emission allowances system to control pollution is
A) that it grants firms a license to pollute. B) the difficulty in determining the emissions target. C) that it does not eliminate pollution completely. D) it discourages firms from implementing cost-effective pollution control technology.
The level of output produced by a monopolistically competitive industry: a. ensures profit in the long run. b. is productively efficient
c. causes a deadweight loss. d. is allocatively efficient.
Objections to monopolies do not include which of the following?
a. They reduce output below the efficient level of output that would be produced in perfect competition. b. They reduce the price below what would be charged in perfect competition. c. They charge a price that is greater than marginal cost. d. They create a welfare cost. e. All of the preceding are objections to monopolies.