The optimal combination of pizza and Coke is the one
a. where marginal utility of pizza equals marginal utility of Coke.
b. where total utility of pizza equals total utility of Coke.
c. where marginal utility per dollar spent on pizza equals marginal utility per dollar spent on Coke.
d. none of the above
c. where marginal utility per dollar spent on pizza equals marginal utility per dollar spent on Coke.
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The real interest rate is ________ related to the supply of loanable funds because ________
A) negatively; the opportunity cost of consumption expenditure increases as the real interest rate rises B) negatively; people are motivated to save more as the real interest rate rises C) positively; people are motivated to increase their consumption expenditure as the real interest rate rises D) positively; the opportunity cost of consumption expenditure increases as the real interest rate rises E) None of the above answers is correct.
A monopolist's supply curve
a. is the upward-sloping portion of its marginal cost curve b. is the portion of its marginal cost curve above AVC c. is parallel to its long run ATC curve d. does not exist because quantity supplied depends on the market demand curve e. is derived from the average variable cost curve
Which of the following examples would most likely be caused by a price floor?
a. shortage of unemployed skilled professionals b. surplus of unemployed skilled professionals c. shortage of unemployed unskilled workers d. surplus of unemployed unskilled workers
Tyrone is reviewing his income and expenses for the two previous years. He notes that he made $7,200 more in the second year than in the first year and he spent $2,400 more in the second year than in the first year. What is his marginal propensity to consume?
a. 7 percent b. 33 percent c. 67 percent d. 333 percent