Steve is planning to divide his study time between English and calculus. It will take him two hours of study for each extra point in calculus and one hour of study to raise his English score by one point. He should allocate his time so that
a. the marginal utility of an hour spent studying calculus is twice the marginal utility of an hour spent studying English
b. the marginal utility of an hour spent studying English is twice the marginal utility of an hour spent studying calculus
c. the marginal utility per hour spent studying calculus equals the marginal utility per hour spent on English
d. he spends twice as much time on calculus as on English
e. he spends twice as much time on English as on calculus
C
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Refer to the table above. If the price level is 120, then the aggregate quantity demanded is ________ than the aggregate quantity supplied and the price level ________
A) greater; rises B) greater; falls C) less; rises D) less; falls E) less; might fall, rise or not change depending on whether real GDP is more than, less than, or equal to potential GDP.
Refer to Figure 19.2. The total utility of two apples is
A. 6 utils. B. 2 utils. C. 5 utils. D. 11 utils.
Given percentage change in supply and the price elasticity of supply, explain how percentage change in equilibrium price varies as the price elasticity of demand changes from 0 to infinity.
What will be an ideal response?
Suppose all prices decrease by 10 percent in the year while the total sales of smartphones remain constant. This is
A. a violation of the law of demand since fewer smartphones should be purchased at a higher price. B. not a violation of the law of demand since the relative price of smartphones did not change. C. not a violation of the law of demand since the law of demand does not apply to expensive goods like smartphones. D. a violation of the law of demand since more smartphones should have been purchased with higher incomes.