Assume that the marginal utilities for the first three units of a good consumed are 200, 150, and 125, respectively. The total utility for the first unit is:
a. 125
b. 150
c. 200
d. 350
c. 200
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The new endogenous growth theory concludes that sustained economic growth in a country comes from the interaction of labor, investments in physical and human capital, and what is perhaps the key ingredient:
A) natural resources. B) the production of ideas. C) post-secondary education within that country. D) immigration into that country.
Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will be shared by all three
Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?
Market economies produce outcomes that are
A. virtually ideal in all respects. B. inferior to most other systems. C. far from ideal, in some respects. D. virtually indistinguishable from command economies.
Economists believe that most people act to increase their expected ______.
a. personal satisfaction b. personal income c. power d. control