At a ball game we can observe people eating hot dogs, french fries, and hamburgers. If all are priced the same and we observe Michelle eating a hot dog and David eating a hamburger, we can conclude that
A) Robert will be eating french fries.
B) Michelle likes hot dogs better than David does and David likes hamburgers better than Michelle does.
C) Michelle derives the same amount of utility from eating a hot dog as David derives from eating a hamburger.
D) at this time Michelle derives more utility from eating a hot dog than from eating either a hamburger or french fries, while David derives more utility from eating a hamburger than from eating either a hot dog or french fries.
Answer: D
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A) demand decreased. B) supply increased. C) demand increased. D) supply decreased.
The physical output that is due to the addition of one more unit of a variable factor of production is
A) average total cost. B) marginal cost. C) average product. D) marginal product.
Supply curves
A) slope upward. B) slope downward. C) are horizontal. D) can have many shapes.
If the value of non-cash assistance to the poor were included in their income
A. the official number of persons classified as poor would be higher. B. the official number of persons classified as poor would be lower. C. the poverty income threshold would decrease. D. the poverty income threshold would increase.