The ratio of the marginal utility of tea to the marginal utility of scones is six for an individual maximizing utility. This implies that
A. a scone is six times more valuable than a cup of tea.
B. the tea to scones price ratio is six to one.
C. this person always eats scones with tea.
D. the tea to scones price ratio is one to six.
Answer: B
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If a hospital is experiencing economies of scale,
a. its average cost curve is positively sloped as output increases. b. its average cost curve is negatively sloped as output increases. c. it should reduce its output level to lower costs. d. quality is falling as output is rising. e. both b and c are true.
Which of the following accounts for the largest percentage of output in the United States?
a. The government b. Business firms c. Households d. Banks e. The rest of the world
Which of the following is a normative economic statement?
a. Congress should increase the legal minimum wage. b. An increase in the legal minimum wage would cause unemployment to increase. c. An increase in the legal minimum wage would cause unemployment to decrease. d. An increase in the legal minimum wage would lead to more equality in the distribution of income.
Natural monopolies include
A. cell phone companies. B. colleges and universities. C. fast-food outlets. D. the local water company.