A local restaurant offers an "all you can eat" buffet for $15 . Mia eats four servings but leaves half of a fifth helping uneaten. Why?
a. Her marginal value of a serving of brunch has fallen below $15.
b. Her marginal value of a serving has fallen below $3 ($15 divided by 5 servings).
c. Her marginal value of food has fallen to zero.
d. The total value she places on the buffet exactly equals $15.
C
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Which of the following is a characteristic of an institution?
A) The institutions of a nation are permanent and cannot be changed over time. B) Institutions place constraints on the behavior of economic agents. C) Institutions are determined by individual opinions without considering the government's preference. D) Institutions have very little influence on a nation's economic prosperity.
The government can overcome the inefficiency created by a good with an external benefit by using
A) public provision. B) marketable permits. C) taxes. D) emission charges. E) None of the above answers is correct.
Suppose there is a simple tax system that says you pay 10% for income up to $10,000, 25% for income between $10,000 and $50,000, and 35% for all income above $50,000. Mr. Campbell has income of $72,000. Mrs. Campbell has income of $55,000.
(A) What is Mr. Campbell's individual tax liability? Mrs. Campbell's? (B) What is their liability if they file a joint return? (C) Is there a marriage penalty? If so, how much is it?
The money demand curve indicates the total quantity of money demanded in the economy at each
a. price level b. level of GDP c. quantity of money supplied d. level of income e. interest rate