Suppose Renee can increase her total utility from consuming video rentals and books by buying one more book and renting one fewer video. Which of the following is true?
A) The marginal utility of video rentals is negative.
B) The marginal utility of the last book consumed exceeds the marginal utility of the last video rental consumed.
C) The marginal utility of the last video rental consumed exceeds the marginal utility of the last book consumed.
D) The marginal utility per dollar spent on books exceeds that of video rentals.
D
You might also like to view...
Refer to Table 2-15. Which of the following statements is true?
A) Jack has a comparative advantage in lawn mowing and George in garden cultivating. B) Jack has a comparative advantage in garden cultivating and George in lawn mowing. C) George has a comparative advantage in both tasks. D) Jack has a comparative advantage in both tasks.
If aggregate output is below the natural rate level, nonactivists of policies would recommend that the government
A) do nothing. B) try to eliminate the high unemployment by attempting to shift the aggregate supply curve to the right. C) try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the right. D) try to eliminate the high unemployment by attempting to shift the aggregate demand curve to the left.
If two or more firms combine or conspire to monopolize trade, this would be in violation of the:
a. Federal Trade Commission Act. b. Clayton Act. c. Sherman Antitrust Act. d. Robinson-Patman Act.
The ratio (in physical units) at which two countries trade goods is known as the
a. opportunity cost b. marginal social cost c. price to earnings ratio d. comparative advantage ratio e. terms of trade