If the average utility of good A is 15 and the average utility of good B is 25, you should:
A. keep consuming the current amounts of both good A and good B.
B. realize that you don't have enough information to answer the question.
C. consume more of good A and less of good B.
D. consume more of good B and less of good A.
Answer: B
You might also like to view...
The financial institutions in our banking system are all in the business of transferring funds from savers to investors. This process is known as
A) financial intermediation. B) money laundering. C) parachuting. D) lobbying.
Some would cite the purchase of defective products and the rising cost of health care as market failures. Argue that these are not true market failures.
What will be an ideal response?
The difference between positive statements and normative statements is that
A) a positive statement involves a value judgment and a normative statement is a statement of fact. B) a positive statement is a statement of fact and a normative statement involves value judgments. C) value judgments are made in normative statements but assumed in positive statements. D) normative statements are provable while positive statements are not.
An insurance company offering discounts to students with high grades in school an example of:
A. screening. B. signaling. C. statistical discrimination. D. building a reputation.