Price reflects the value households place on a good and marginal cost reflects the ________ of the resources needed to produce a good.
A. availability
B. opportunity cost
C. quantity
D. productivity
Answer: B
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What are the main arguments for and against Fed independence?
What will be an ideal response?
Which of the following is NOT exempt from antitrust laws?
A) professional baseball B) labor unions C) airlines D) public transit systems
Other things equal. an open market purchase of government securities by the Fed will not result in which of the following?
a. increased bond prices b. a reduced volume of loans issued by the commercial banking system c. decreased interest rates d. an increase in the price level
Suppose that Cathy spends all of her income on 20 units of good X and 25 units of good Y. Cathy's marginal utility from the 20th unit of good X is 9 utils, and her marginal utility from the 25th unit of good Y is 19 utils. If the price of good X is $0.50 per unit and the price of good Y is $1.00 per unit, then to comply with the rational spending rule, Cathy should:
A. purchase more than 20 units of good X and more than 25 units of good Y. B. purchase more than 20 units of good X and less than 25 units of Y. C. continue to purchase 20 units of good X and 25 units of good Y. D. purchase less than 20 units of good X and more than 25 units of good Y.