If the slope of a person's utility function for different money prizes is linear, the person
A. is risk averse.
B. is indifferent to risk.
C. is a risk lover.
D. We can't really say
Answer: B
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Emma consumes only tacos and pizza. They are substitute goods for her. The price of a taco falls. Emma will buy ________ tacos and her marginal utility from the last slice of pizza she eats ________
A) more; does not change B) more; decreases C) the same quantity; does not change D) less; increases
What is a monopsony and why is a monopsony able to pay a lower wage rate than a firm in a competitive labor market?
What will be an ideal response?
A regulated natural monopolist allowed to earn a "fair" rate of return would produce to the point at which
A) the price per unit equals the long-run average cost. B) the marginal revenue curve meets the long-run average cost curve. C) the marginal revenue curve meets the long-run marginal cost curve. D) the price per unit equals its marginal revenue.
Which of the following is a demand-increasing factor in the health care market?
A. Rising incomes. B. The aging of the population. C. Asymmetric information. D. All of these.