If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
a. money means more to Allison.
b. money means more to Brad.
c. Brad is richer than Allison.
d. Allison is richer than Brad.
e. nothing, since we can't make interpersonal utility comparisons.
e
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If an increase in the price of Good A causes a decrease in demand for Good B, Goods A and B are said to be complements
a. True b. False Indicate whether the statement is true or false
When an economy expands into an economic boom, automatic stabilizers will tend to
a. enlarge the budget deficit (or reduce the surplus). b. reduce the budget deficit (or increase the surplus). c. ensure that the budget will remain in balance. d. reduce the supply of money and, thereby, retard aggregate demand.
A consumer maximizes utility when she consumes at a point where?
A. ?the marginal utility of each good is the same. B. ?the marginal utility per dollar spent on each good is the same. C. ?the price of each good is the same. D. ?All of the above statements are true.
Each week Jim buys the same market basket composed of a case of ramen noodles, two bottles of coke, and three bags of tortilla chips. Jim has found that it takes more of his wages to buy this market basket than before. Jim is experiencing ________.
A. disinflation B. depreciation C. inflation D. deflation