Jose goes to an all-you-can-eat buffet at a Chinese restaurant and consumes three plates of food. He does not go back for a fourth plate of food because
A. The marginal utility of the fourth plate would no longer be positive.
B. The price of the fourth plate is too high.
C. He has reached the point of increasing marginal utility.
D. His total utility would increase with the fourth plate of food.
Answer: A
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Changing the price of good Y will
A. only affect the demand for that good. B. have effects across some markets. C. keep prices down in all markets. D. have no effect.
The gender wage gap in Japan is smaller than in the U.S.; in Scandinavia it is wider
Indicate whether the statement is true or false
The basis for international trade is
A. self-sufficiency. B. specialization. C. amassing national wealth at the expense of trading partners. D. maximizing your exports and minimizing your imports.
Suppose New Zealand uses one unit of labor to produce a kiwi and two units of labor to produce an apple. Suppose Australia uses two units of labor to produce a kiwi and one unit of labor to produce an apple. In this case, New Zealand:
A. has a comparative advantage in producing kiwis. B. does not have a comparative advantage in producing either good. C. has a comparative advantage in producing apples. D. has a comparative advantage in producing both goods.