Joshua consumes pizza and cola so that the marginal utility per dollar spent for the last piece of pizza consumed per week is 3 while the marginal utility per dollar spent for the last cola consumed is 1.5 . Joshua should spend more of his income on pizza and less on cola in order to maximize utility
a. True
b. False
A
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How does the "rule of law" increase wealth for a country?
A. It is up to society to make decisions and they can choose whatever rules they want. B. Rule of law takes away incentives for the business. C. Known and predictable laws make governing a business less risky. D. It guarantees business owners profit which improves the country's standard of living.
The existence of discouraged workers will lead to an official unemployment rate that is
A) overstated. B) understated. C) either overstated or understated. D) unbiased.
Refer to Figure 9.1. Suppose the market is currently in equilibrium. If the government establishes a price ceiling of $20, producer surplus will
A) fall by $200. B) fall by $300. C) remain the same. D) rise by $200. E) rise by $300.
Under the gold standard, gold discoveries in Alaska and South America led to
a. both c and d b. a decrease in the domestic money supply c. inflation d. an increase in the domestic money supply e. deflation