Suppose Enid could increase her total utility by purchasing one more book and one less video rental. Which of the following is true?
a. The marginal utility of video rentals exceeds the marginal utility of books.
b. The marginal utility of books exceeds the marginal utility of video rentals.
c. The marginal utility of video rentals is negative.
d. The marginal utility per dollar spent on books exceeds that of video rentals.
e. Total utility is at a maximum.
D
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Any combination of two goods that lies within the production possibilities frontier
A) is currently impossible to produce. B) is currently possible to produce. C) represents a more efficient combination of output than anything lying beyond the frontier. D) represents a more efficient combination of output than anything lying on the frontier.
If the demand for a commodity is perfectly elastic, a downward shift in supply will result in lower prices
Indicate whether the statement is true or false
Suppose you were told that Botswana had few skilled workers, a primitive banking system, and an inefficient and limited electric power industry. You would know that the person was describing was Botswana's problem with
a. its economic infrastructure b. political stability c. its agricultural sector d. its traditional values e. poverty
Opportunity cost refers to how many inputs a producer requires to produce a good
a. True b. False Indicate whether the statement is true or false