A consumer maximizes total utility when all available income is spent and the
A) marginal utility from each good is equal for all goods.
B) marginal utility per dollar from each good is equal for all goods.
C) dollars spent on the last unit of each good are equal for all goods.
D) total utility from all goods purchased is equal.
B
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A restriction on the number of people allowed to be medical doctors in the United States would most likely
A) increase doctors' fees. B) decrease the demand for doctors. C) decrease the demand for nurses. D) decrease the number of people who get sick.
In the calculation of the cost of going to college, an economist would always include the cost of room and board.
Answer the following statement true (T) or false (F)
Suppose the CPI in 1990 is 500, with 1967 as the base year. On average, how much money must be spent in 1990 to purchase the same quantity of goods and services that could have been bought with $10 in 1967?
A. $50 B. $5 C. $400 D. $500
Jessica must choose option A or option B. Option A gives her $10,000 for sure. Option B gives her $5,000 if a fair coin toss shows heads and $15,000 if it shows tails. If Jessica is risk averse her utility of wealth curve becomes
A) flatter as her wealth increases and she will choose option A. B) flatter as her wealth increases and she will choose option B. C) steeper as her wealth increases and she will choose option A. D) steeper as her wealth increases and she will choose option B.