It is often observed that, over the same period of time and for the same good, marginal utility declines rapidly for some consumers and very little for others. This observation illustrates:
a. that economic theory is of little value in explaining consumer behavior.
b. that consumers are not identical.
c. tastes and preferences should not be included in any discussion of consumer choice.
d. tastes and preferences among consumers are quite similar.
e. that if consumers weren't identical, economic theory would not be able to provide insight into consumer behavior.
b
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If you were a government official and wanted to raise the price of wheat, which of the following actions would you take?
a. Take wheat from government storage and sell it. b. Encourage farmers to use more fertilizer. c. Lower the price of rye. d. Subsidize purchases of farm equipment. e. Encourage farmers to grow less wheat.
Imagine that Wingate National is a new bank, and that the legal reserve requirement is 10 percent. If it accepts a $1,000 deposit, then the maximum value of the loans it makes is
a. $0 b. $90 c. $100 d. $900 e. $910
Pair-wise majority voting eliminates which problem?
A. Third party problem B. Majority options problem C. Misalignment problem D. Swing-vote problem
Albert's Pretzel Baking Company used to have four workers who were each in charge of making their own pretzels from start to finish. Now, one worker mixes the dough, another shapes it, the third puts the unbaked pretzels into the oven and the fourth removes the finished product. Output has doubled. This is an example of
A) neutral technical change. B) labor-saving technical change. C) division of labor. D) economies of scale.