Kathleen likes avocado and crab dip. After eating avocado and crab dip with four crackers, she switches to cheese with crackers. We can conclude that
A. Kathleen is no longer maximizing her utility.
B. at this point cheese and crackers have a higher marginal utility per dollar spent than that of avocado and crab dip with crackers.
C. the avocado and crab dip cannot have tasted that good.
D. the avocado and crab dip with crackers now has a marginal utility of zero.
Answer: B
You might also like to view...
Define the following terms and explain their importance to the study of economics. a. public good b. externality c. irreversible decision d. moral hazard e. rent seeking
What will be an ideal response?
The two main determinants of money demand are
A) GDP and the money supply. B) aggregate supply and aggregate demand. C) interest rates and income. D) the inflation rate and the money supply.
In June 2009 the Bureau of Labor Statistics reported an adult population of 234.9 million, unemployment of 12.4 million, and employment of 141.6 million. Based on these numbers the labor-force participation rate was
a. 154/234.9. b. 141.6/234.9. c. 141.6/154. d. None of the above is correct.
Most banks in the United States are owned by the government and operate as nonprofit institutions.
Answer the following statement true (T) or false (F)