The consumer maximizes his total utility (measured in money terms) when, at his chosen quantity of every good he buys, marginal utility
a. equals zero.
b. divided by price equals zero.
c. equals price.
d. equals total utility.
c
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Adam Smith’s diamond-water puzzle
A. can be resolved by distinguishing between marginal and total utility. B. occurs because diamonds have no utility. C. occurs because scarcity increases total utility. D. will likely never be resolved with existing economic tools.
Paper money is a good example of commodity money
a. True b. False Indicate whether the statement is true or false
Producers' political power and strong stake in the regulatory outcome lead them, in effect, to control the regulating agency and prevail on it to serve producer interests is called the:
a. capture theory of regulation b. tying contract c. exclusive dealing d. interlocking directorate
d. Ishmael goes to the ATM twice a week because consumer prices have been fluctuating so rapidly.
a. 0 percent b. 1 percent c. 2 percent d. 3 percent