While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $3. Jordan should purchase the value meal ifÂ
A. his marginal cost exceeds his marginal benefit.
B. his marginal benefit of the third taco is greater than 50 cents.
C. his value of the third taco is less than 50 cents.
D. he has $3 in his wallet.
Answer: B
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As entrepreneurs find new market niches and help specific industries grow, other industries will
(a) grow proportionately. (b) grow disproportionately. (c) fail. (d) grow disproportionately and fail.
Suppose a production possibilities frontier (PPF) has been plotted on a graph. If the horizontal axis of the graph measures the output of capital goods and the vertical axis measures the output of consumer goods, then a point inside the PPF represents: a. a larger quantity of capital goods than that represented by a point along the PPF. b. an inefficient output combination of the two goods in
the economy. c. an unattainable output combination of the two goods in the economy. d. an output combination of more consumer goods than capital goods. e. a larger quantity of consumer goods than that represented by a point along the PPF.
Financial intermediaries ______.
a. use corporate profits for capital investment b. are residual claimants of corporate resources who receive a proportion of profits c. make household funds available to firms d. provide fixed, regular dividend payments to their clients
Why does total utility rise at a decreasing rate as an individual's consumption of an item increases?
What will be an ideal response?