Which of the following is true of units of utility?
a. Each unit is worth $1.
b. They cannot be compared across consumers.
c. They apply to goods but not to services.
d. They do not exist for very wealthy individuals.
e. They are negative for inferior goods.
B
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Suppose that a new tax on hiring labor is imposed. The demand for labor will ________, and as a result real wages will ________ and employment will ________
A) increase; increase; decrease B) increase; decrease; increase C) increase; increase; increase D) decrease; decrease; decrease
The table above shows Tom's total utility from milkshakes and sodas. A milkshake costs $2.00. How much marginal utility per dollar would Tom get if he purchased the ninth milkshake?
A) 1728 units per dollar B) 20 units per dollar C) 10 units per dollar D) none of the above