A person maximizes utility when he equalizes the ________ across products.
A. marginal utility
B. total utility
C. marginal utility per dollar spent
D. total utility per dollar spent
Answer: C
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To economize means to
A) allocate available resources in a way that yields the most value to the economizer. B) behave in a selfish rather than generous manner. C) conserve as much as possible for future use. D) put economic theory to work. E) save rather than spend.
Suppose China can produce either 300 telephones or 200 DVD players, and Japan can produce either 200 telephones or 100 DVD players. Implicitly, Japan has
A. A comparative but not necessarily an absolute advantage in telephones. B. An absolute but not necessarily a comparative advantage in telephones. C. Neither a comparative nor an absolute advantage in telephones. D. Both an absolute and a comparative advantage in telephones.
Which is an example of a barter system?
a. Instead of paying rent, you clean the house for the owner. b. Instead of paying cash for a computer, you use a credit card. c. Instead of paying the full amount for a car, you pay 10 percent in cash and pay for the rest in monthly installments. d. Instead of paying for a purchase in Mexico in pesos, you use dollars from the United States.
A demand curve represents a(n)
A) direct relationship between price and quantity demanded. B) direct relationship between price and demand. C) indirect or inverse relationship between price and quantity demanded. D) indirect or inverse relationship between price and supply.