The most common form of trading goods for goods is
a. bilateral trade.
b. government commodity distribution.
c. status-based trades.
d. barter.
e. payments in kind.
d
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Supply curves usually slope upward because producers face increasing opportunity costs when increasing output
a. True b. False
In the indifference curve-budget line model of labor supply, the vertical intercept of the budget line represents
a. the worker's nonlabor income. b. the wage rate paid to the worker. c. the number of leisure hours enjoyed by the worker. d. the number of hours of labor that the worker supplies.
Total utility is best defined by which of the following?
a. The total satisfaction received from consuming a particular amount of a product b. The additional satisfaction received from consuming one more unit of a product c. The maximum amount of satisfaction from consuming a product d. The change in marginal utility multiplied by the price of a product
The price of a piece of pizza is $1, and the price of a movie is $6. The consumer has purchased 2 pieces of pizza and 2 movies, and her marginal utility from the second piece of pizza is 20 and from the second movie is 120. The consumer has an income of $21. This combination of goods
A. maximizes utility because the marginal utility of the last dollar spent on each good is the same, but it is not an equilibrium because marginal utility is not zero. B. is not an optimum because the consumer has not spent all of her money. C. maximizes utility and is an optimum because the marginal utility of the last dollar spent on each good is the same. D. is not an optimum because the marginal utility of the last dollar spent on each good is not the same.