Bonnie gets her hair cut at her usual salon and is very happy with the results. Later that afternoon, she goes to the mall and sees that a hair salon is giving away free haircuts only on that day. If Bonnie does not take advantage of the giveaway, it is because the:
a. marginal utility of the next haircut would be zero or negative.
b. marginal utility of the next haircut would increase.
c. marginal utility of the next haircut would be zero or positive.
d. total utility of both haircuts would be zero or negative.
e. total utility of both haircuts would be higher than just one haircut.
a
You might also like to view...
What is the difference between Nominal GDP and Real GDP?
a. Real GDP only measures the production of real goods and excludes services of any kind. b. Real GDP is a figure adjusted for exchange rate differences among countries. c. Real GDP is a figure adjusted for inflation. d. There is no difference at all. Real GDP is a synonym for Nominal GDP. e. Real GDP measures goods and services produced within a nation's borders, and nominal GDP measures goods and services produced by domestic resources anywhere in the world
A budget deficit occurs if government spending:
A. Equals tax revenues. B. Is greater than tax revenues. C. Is less than tax revenues. D. Causes tax revenues to increase.
The law of diminishing marginal product
A. holds in the short run and the long run because as you increase the amount of variable inputs eventually the increases in output will decrease. B. holds in the short and long run because of economies to scale. C. does not hold in the short run because of fixed costs. D. does not hold in the long run because there are no fixed inputs in the long run.
If the price of an inferior good falls, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less