When the ratios of the marginal utility to the price of goods are equal, you're maximizing utility.
Answer the following statement true (T) or false (F)
True
If the ratio of marginal utility to the price of a good exceeds the ratio of marginal utility to the price of another good, you can adjust your consumption to increase utility. If the ratios are the same, you cannot increase utility without spending more.
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In 2017, the U.S. median income for a family of four was about $61,000.
Answer the following statement true (T) or false (F)
In this graph, what is the difference between the marginal cost and the average total cost?
a. 0
b. $4.90
c. $6.00
d. $100
The data illustrate the:
A. law of comparative advantage.
B. utility-maximizing rule.
C. law of diminishing marginal utility.
D. law of increasing opportunity costs.
The amount by which the expected return on a risky asset exceeds the return on an otherwise comparable safe asset is known as the
A. term spread. B. CDS spread. C. VIX. D. risk premium.