Basket of goods A is on an indifference curve that lies further from the origin than basket B. From this we know that
A) the prices of the goods in A are more than the prices of the goods in B.
B) the satisfaction from consuming A is more than the satisfaction from consuming B.
C) the marginal utility from consuming A is more than the marginal utility from consuming B.
D) all other consumers would also rank B above A.
Answer: B
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If you are considering buying either an Apple Watch or a Samsung Gear S2, and you choose the Samsung only because the price is lower, then you consider
A) the Apple Watch and the Samsung Gear S2 to be substitutes. B) the Apple Watch and the Samsung Gear S2 to be complements. C) the Apple Watch to be a normal good and the Samsung Gear S2 to be an inferior good. D) the Apple Watch to be an inferior good and Samsung Gear S2 to be a normal good.
Suppose the absolute value of the price elasticity of demand for meals at Fortune Buffet House is ?. What happens to sales revenue if the restaurant increases its price by 5 percent?
A) Sales revenue falls by 100 percent. B) Sales revenue falls by less than 5 percent. C) Sales revenue remains unchanged. D) It cannot be determined without information on prices.
The dollar of the United States became the postwar world's key currency because of all EXCEPT
A) the early convertibility of the U.S. dollar in 1945. B) the special position of the dollar under the Bretton Woods system. C) the strength of the American economy relative to the devastated economies of Europe and Japan. D) central banks naturally found it advantageous to hold their international reserves in the form of interest-bearing dollar assets. E) the ease of transporting U.S. dollars compared with other currencies.
The number of standard deviations z that a particular value of r is from the mean ? can be computed as z = (r - ?)/ ?. Suppose that you work as a commission-only insurance agent earning $1,000 per week on average. Suppose that your standard deviation of weekly earnings is $500 . What is the probability that you earn zero in a week? Use the following brief z-table to help with this problem. Z
value Probability -3 .0013 -2 .0228 -1 .1587 0 .5000 a. 1.3% chance of earning nothing in a week b. 2.28% chance of earning nothing in a week c. 15.87% chance of earning nothing in a week d. 50% chance of earning nothing in a week e. none of the above