Sarah and Diane are both billing clerks for the local trucking company earning $17,000 per year. Sarah is attending college, plans to graduate in one year and earn $55,000 as an economist
Diane is not in college or undergoing any specialized training and will have the same job next year. According to economic theory, which of the two individuals would tend to have a higher current savings rate? A) Diane
B) Sarah
C) Both will have the same saving rate.
D) Economic theory sheds no light on this question.
A
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Which of the following correctly distinguishes the concepts of marginal utility and total utility?
a. Marginal utility is inversely related to the number of goods consumed, while total utility is directly related to the number of goods consumed. b. Marginal utility is directly related to the number of goods consumed, while total utility is inversely related to the number of goods consumed. c. Marginal utility is the total satisfaction provided by the consumption of a good, while total utility is the additional amount of satisfaction received from the consumption of an additional unit of a good. d. Total utility is always a positive value, while marginal utility is always a negative value.
Which of the following is not an effect of an agricultural price support?
A) a surplus B) fewer exchanges C) higher prices paid by consumers D) government purchase and storage of surplus E) higher-quality products
Economies of scale and specialization are characteristics of
A. comparative and absolute advantage B. factors of production C. economics of scale D. call centers in India
The Larry Bird exception to the salary cap allows
A. teams to sign players out of high school. B. teams to sign their own stars in order to keep them. C. players to be paid while injured and not have their salaries count against the cap. D. teams to sign other team's stars to allow competitive balance.