A consumer was at an optimum. She then discovers that the marginal utility per dollar spent on food is more than the marginal utility per dollar spent on movies. She knows then that
A. the price of movies must have decreased or the price of food must have increased.
B. the price of movies must have increased or the price of food must have decreased.
C. the price of food must have increased.
D. the price of movies must have decreased.
Answer: B
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U.S. exports involve an:
A. inflow of foreign currency from foreigners to the U.S. economy. B. outflow of dollars from the United States to foreigners. C. outflow of foreign currency from the United States to foreigners. D. inflow of dollars from foreigners to the U.S. economy.
What is the difference between scarcity and a shortage?
What will be an ideal response?
The majority of the income earned in the United States is paid in
A) wages. B) rent. C) profit. D) dividends. E) interest.
Suppose a monopolist's demand curve is P = 60 - Q, and its cost function is C = 10Q + 50 so its marginal cost is 10. If a governmental agency wished to set the price that maximized social welfare, that price would be
A) $10.00. B) $11.02. C) $14.57. D) $35.00.