If marginal utility is zero
A. a rational consumer will not consume additional units.
B. a rational consumer will consume more units next time.
C. a rational consumer will consume more units if the price is zero.
D. a rational consumer will consume fewer units next time.
Answer: A
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Ginger bought a phone that came with a $10 rebate. Ginger should fill out and mail in the rebate form if:
A. Ginger's surplus from purchasing the phone was less than $10. B. the opportunity cost of the time and trouble of sending in the rebate form is more than $10. C. the opportunity cost of the time and trouble of sending in the rebate form is less than $10. D. she would have bought the phone without the rebate, and so sending in the rebate form involves no opportunity cost.
Suppose that inflation is at the target rate and output has fallen substantially below potential output. A central bank with a primary objective of price stability should ________
A) do nothing, because inflation cannot rise when unemployment is high B) ease monetary policy, to avoid a decrease in the inflation rate C) do nothing, because stabilizing economic activity is not a primary objective D) ease monetary policy, because avoiding high unemployment is more important than avoiding high inflation E) none of the above
Stock owners have a claim to the assets and earnings of the corporation and are liable for all of the corporation's debts
Indicate whether the statement is true or false
Suppose that the extra cost to Tim of a third glass of soda is zero because he's at a restaurant that gives free refills. According to the Cost-Benefit Principle Tim should:
A. drink a third glass of soda if the extra benefit of doing so is positive. B. not drink a third glass of soda. C. drink a third glass of soda. D. drink a third glass of soda if his total benefit from drinking soda is positive.