Sam spends all of his income on textbooks and hot dogs. The price of a textbook is $40 and the price of a hot dog is $0.50
If Sam is maximizing his utility and the marginal utility he derives from the last textbook he purchases is 400, then the marginal utility he derives from his last hot dog purchased must be A) 400.
B) 10.
C) 5.
D) 20.
C
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If countries have similar factor endowments and productivities, their trade is likely to be interindustry
Indicate whether the statement is true or false
Once the supply curve for a product or service is drawn, it
a. remains stable over time. b. can shift either rightward or leftward. c. is possible to move along the curve, but the curve will not shift. d. tends to become steeper over time.
Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of 5 per unit of output on the seller. The new equilibrium price is:
A. 10 B. 7 C. 15 D. 2
Mahatma Gandhi, John F. Kennedy, Martin Luther King Jr. are all cited as charismatic leaders. Economics tells us that charisma can be learned. What is the inconsistency in the economic argument?
What will be an ideal response?