Marginal utility is the total amount of satisfaction one receives from the consumption of a certain quantity of a good
a. True
b. False
Indicate whether the statement is true or false
False
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A rise in domestic productivity tends to __________ domestic prices and causes the dollar to __________ relative to foreign currencies
A) raise; appreciate B) raise; depreciate C) lower; appreciate D) lower; depreciate
Economic theory suggests that the consumer prejudice explanation for discrimination means that consumers will have to pay more to be served by employees of a specific group
a. True b. False Indicate whether the statement is true or false
Suppose there are only two goods, food and clothing, with food measured on the vertical axis. If the price of clothing changes, holding all else constant,
a. the budget line undergoes a parallel shift to the right b. the budget line undergoes a parallel shift to the left c. a new point of utility maximization will be reached d. the budget line becomes flatter e. the slope of the budget line remains constant
Use the following information to answer the next question. Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial income to be $5,000 a year. To start the business, he cashed in $100,000 in bonds that earned 10% interest annually to buy a software company, Extreme Gaming. In the first year, the firm sold 11,000 units of software at $75 each. Of the $75, $55 goes for the costs of production, packaging, marketing, employee wages and benefits, and rent on a building. The implicit costs of Harvey's firm in the first year were
A. $150,000. B. $100,000. C. $50,000. D. $60,000.