As a consumer moves rightward along an indifference curve, the
A) consumer remains indifferent among the different combinations of goods.
B) consumer generally prefers the combinations of goods farther rightward along the indifference curve.
C) income required to buy the combinations of the goods always increases.
D) relative price of both goods falls.
A
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In the Battle of the Sexes game,
a. Fred and Ethel are best off choosing the activity they prefer. b. Fred is better off attending the opera with Ethel than having Ethel attend the boxing match with him. c. Ethel is better off attending the boxing match with Fred than having Fred attend the opera with her. d. Fred and Ethel would both be better off choosing to attend either activity together than going alone to the activity they prefer.
For the past 40 years, growth in health care spending has outpaced growth in the rest of the economy by _____ percentage point(s) annually.
a. 2-3 b. over 6 c. 4-5 d. less than one
Suppose that a vaccine is developed for a highly contagious strain of flu. The likelihood that anyone will get this flu decreases as more people receive the vaccine. One of the demand curves below represents the private demand for the vaccine and the other represents the social demand for the vaccine.
The government could increase total economic surplus by:
A. subsidizing production of the vaccine. B. providing 250 doses of the vaccine for free. C. taxing production of the vaccine. D. encouraging people to pay each other to get the vaccine.
What do we know about total utility when marginal utility is zero?
What will be an ideal response?