If a consumer concludes that the marginal utility of the last dollar spent on vegetables exceeds the marginal utility of the last dollar spent on junk food, he will respond by
A) consuming relatively more junk food and fewer vegetables.
B) consuming relatively more vegetables and less junk food.
C) consuming equal amounts of vegetables and junk food.
D) halting consumption of junk food altogether.
Answer: B
Economics
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In the above figure, a shortage could be caused by a government price ceiling set at
A) $1.00. B) $2.00. C) $2.50. D) $3.00.
Economics
The use of interchangeable parts in armament production by Whitney and North:
a. caused machinery to be replaced by skilled labor. b. capital-labor proportions in the US to remain equal to those in England. c. allowed producers to raise the price of guns. d. increased the demand for skilled labor.
Economics