The total utility you get from eating slices of pizza on a given night is the
A) marginal utility of the last slice times the total number of slices eaten.
B) sum of the differences in marginal utility as you increase the number of slices eaten.
C) sum of the marginal utilities of all slices eaten.
D) sum of the marginal utilities per dollar spent on all slices eaten.
C
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The relationship among interest rates on bonds that are otherwise similar but that have different maturities is known as the
A) term structure of interest rates. B) risk structure of interest rates. C) term premium. D) Treasury bond coupon.
A tax on a previously untaxed monopoly-produced good will necessarily lower total welfare if
A) the demand curve is relatively inelastic. B) the demand curve is relatively elastic. C) less than the socially optimum is produced before the tax. D) more than the socially optimum is produced before the tax.
Firemen generally are paid higher wages because
a. they are usually highly educated b. they are usually working under riskier conditions c. they are working long and uncertain hours d. both B&C
Say a consumer is choosing between wine and cheese. The price of wine is 10 and the price of cheese is 5. If the marginal rate of substitution is 4, and if wine is on the horizontal axis and cheese is on the vertical axis then the consumer is purchasing
A. too much wine. B. purchasing more than what her income would allow. C. just the right amount of both goods. D. too much cheese.