Suppose Joe is maximizing total utility within his budget constraint
If the price of the last pair of jeans purchased is $25 and it yields 100 units of extra satisfaction and the price of the last shirt purchased is $20, then, using the rule of equal marginal utility per dollar spent, the extra satisfaction received from the last shirt must be
A) 2,000 units of utility. B) 500 units of utility.
C) 100 units of utility. D) 80 units of utility.
D
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Some people support the Euro in hopes that the European Central Bank will emulate the monetary policy of the central bank of
A) Germany. B) France. C) Italy. D) Spain.
Gasoline and heating oil are examples of products which are
A) joint products in fixed proportions. B) joint products in variable proportions. C) joint products that are complements. D) unrelated to each other.