Derek has $1 to spend at the grocery store. An apple, an orange, and a banana cost $0.50 each. If Derek's MUA/PA (ratio of marginal utility to price) of an apple is 45, MUO/PO of an orange is 38, and MUB/PB of a banana is 52, he will purchase a(n) _____ first and a(n) _____ second
a. apple; orange
b. orange; apple
c. banana; orange
d. banana; apple
e. orange; banana
d
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Countries such as the United States that have large populations tend to have
A) higher trade-to-GDP ratios. B) lower trade-to-GDP ratios. C) relatively greater capital outflows. D) relatively smaller capital outflows. E) None of the above.
Perfectly competitive firms ____ earn zero economic profit in long-run equilibrium because ____.
A. always; firms in perfectly competitive industries always maximize output and so flood the market until the equilibrium price of output is driven to zero B. sometimes; the demand curve for an individual perfectly competitive firm may or may not cross the company’s long-run average total cost curve at its lowest point C. always; firms enter whenever their economic profit is positive and exit whenever it’s negative, so in long-run equilibrium economic profit must always be zero D. never; no firm would be willing to produce if it received zero economic profit
Self insurance refers to: the practice of setting aside funds to pay for medical care expenses instead of paying premiums to an insurance company. Approximately, _______ of all employees who participate in group insurance plans work for firms that self-insure
a. starting one's own insurance company b. buying insurance from a not for profit entity c. setting aside fund to pay for medical care expenses instead of buying insurance d. none of these e. both a and b
Identify the most likely impact of a decrease in the wealth of consumers in an economy, other things remaining constant
a. A leftward shift of the aggregate supply curve b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A downward movement along the aggregate demand curve e. A steeper aggregate supply curve