Consumer choice theory generally concludes that is based on the hypothesis that each consumer wants to
A. maximize her total utility.
B. maximize her marginal utility.
C. minimize the rate at which her marginal utility diminishes.
D. minimize the percentage of her consumption diverted to inferior goods.
Answer: A
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What is the "medium of exchange" function of money?
a. Money provides a unit for measurement of different goods and services. b. Money has the ability to hold value over time. c. Materials used to manufacture money are of medium grade or quality, so that people will not hoard money for its commodity value d. Money is widely accepted in exchange for goods and services
Under a regressive tax, the fraction of income paid in taxes
A. rises as income rises. B. is unchanged as income changes. C. falls as income rises. D. is proportional to the change in income.
Which of the following would be illegal under the Clayton Act?
A. Executives from Nike and Reebok meet to fix the price of athletic shoes. B. Ford and Firestone Tire agree to merge. C. Xerox will only sell its copy and print machines if buyers agree to also buy a service contract. D. Healthy Energy Bar Co. falsified a study showing the health benefits of its product and uses that study in its advertising.
Which statement is true?
A. The poverty line is raised each year. B. The poverty line is lowered each year. C. The poverty line stays the same from one year to the next. D. None of these statements are true.