Suppose that at current consumption levels an individual's marginal utility of consuming an extra hot dog is 10 whereas the marginal utility of consuming an extra soft drink is 2 . Then the MRS (of soft drinks for hot dogs)—that is, the number of hot dogs the individual is willing to give up to get one more soft drink is
a. 5
b. 2
c. 1/2
d. 1/5
d
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The table above shows Mary's utility from chips and soda. The table shows that
A) Mary prefers sodas to chips. B) Mary will consume no soda and only chips. C) Mary's marginal utility decreases as she consumes more chips. D) Mary's total utility decreases as she consumes more chips.
Diminishing marginal returns occur when:
A) units of a variable input are added to a fixed input and total product falls. B) units of a variable input are added to a fixed input and marginal product falls. C) the size of the plant is increased in the long run. D) the quantity of the fixed input is increased and returns to the variable input fall.
Compared to the unemployed during the Great Depression, persons unemployed in today's economy are
a. worse off due to higher price levels. b. worse off due to higher rates of unemployment in the 1990s. c. better off due to unemployment insurance. d. better off due to lower price levels.
When a country is considering the question of whether to produce a product domestically or import the product, the country should make the decision based on ___________________.
Fill in the blank(s) with the appropriate word(s).