Betty spends all her income on wine and brie. Currently she gets 30 utils from the last bottle of wine and 15 utils from the last package of brie. The price of wine is $6 per bottle and the price of brie is $4 per package.
a. Betty cannot increase her total utility by changing the combination of wine and brie she consumes.
b. Betty can increase her total utility by buying more wine and less
brie.
c. Betty can increase her total utility by buying more brie and less wine.
d. Betty could increase her total utility by buying less of both brie and wine.
b
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Refer to the scenario above. Which of the following problems is most likely to arise in this case?
A) Adverse selection B) Moral hazard C) The tragedy of the commons D) The free-rider problem
Early nineteenth century banks primarily
(a) enabled small savers to buy shares in a diversified portfolio of investments. (b) accepted and managed checkable deposits. (c) provided a broad range of financial services. (d) relied on a federal safety fund in times of well spread crisis.
The failure of the Knights of Labor to bring about structural change in the U.S. economy and society was mainly due to
a. the disruptive activities of detective agents hired by employers b. its inability to convince its own members of the importance of these wider goals c. its failure to represent the less-skilled industrial workers d. its excessive focus on craft unions e. its limited membership
Economic rent is a payment for a factor of production that elicits an increase in the quantity supplied
a. True b. False Indicate whether the statement is true or false