Zachary spends his day studying for a total of four hours and exercising for one hour. Using the concept of utility to explain his choices, we can say
A. the marginal utility of studying for a fifth hour will be negative.
B. the marginal utility from studying for a fifth hour is less than the marginal utility from the first hour of exercise.
C. the total utility gained from exercising for one hour is greater than the total utility from studying for four hours.
D. the marginal utility of exercising for the first hour was greater than the marginal utility of studying for the first hour.
Answer: B
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Refer to the table above. If exports increase by $4,000 in the next year, ________, all other variables remaining unchanged
A) trade surplus will increase by $2,000 B) trade deficit will increase by $2,000 C) gross domestic product will increase by $4,000 D) gross domestic product will decrease by $4,000
Assume a firm produces 500 units of a good by using two inputs, capital and labor, whose per unit prices are $10 and $4
Assume also that the marginal physical product of the last unit of capital is 30 and the marginal physical product of the last unit of labor is 10. Is this firm minimizing its costs of producing 500 units of output? A) No, because the marginal products of the two inputs are not equal. B) No, because the MRTS and the price ratio for the two inputs are not equal. C) No, because the prices of the two inputs are not equal. D) The answer cannot be determined without more information.